The Institute for Urban Economics launches a publication series entitled ‘Economies of Russia’s Cities and Metropolitan Areas’ on basic indicators of economic development of Russia’s cities and metropolitan areas. The project is being funded through the IUE Endowment.
This first issue focuses on a comparative analysis of 20 largest metropolitan areas (urban agglomerations or metro areas), by the size of their economies and also on assessment of the links between metropolitan economies and real estate as their main tangible (physical) assets.
To assess the size of a metro economy we utilized a new IUE’s technique for estimating gross metropolitan product of cities and metro areas.
Gross metropolitan product (GMP) is an indicator to measure the market value of goods and services produced in all economic sectors of a city during a year. GMP of a metropolitan area includes GMPs of all the cities within a given metro area. The indicator is estimated based on a method similar to the income approach method for GDP calculation with a number of assumptions made to compensate for the absence of a system of accounts at the city and metro levels from Russia’s statistical framework.
The indicators estimates were based on data from the Federal State Statistics Service (or Rosstat), state extra-budgetary funds, the Federal Tax Service, the Federal Treasury. International comparative analysis is informed by data from a joint project ‘Redefining Global Cities: the Seven Types of Global Metro Economies’ of the Brookings Institution, the world’s top think-tank, and JPMorgan Chase, a leader in investment banking, comprising a review of economies of global cities and metropolitan areas for the year 2015.