Subject The article addresses the urbanization and its role in economic and social processes. Objectives The study aims to examine the processes of urbanization and economic development in the Federal districts of Russia. Methods The study employs a comparative analysis and graphical method. To assess the relationship between urbanization (medium-sized towns) and economic development in the Federal districts, I apply the least squares approach. Results There was a more than 50% increase in urbanization level from 1917 to 2017. In the Central Federal District, the urban growth was the highest in the Moscow oblast, with noticeable linear relationship between the level of urbanization and economic development. In the Northwestern Federal District there is also a serious difference between the Nenets Autonomous Okrug and the rest regions. The analysis shows a linear relationship between medium-sized towns and economic development in the Southern, Volga, Ural and Siberian Federal Districts. The findings can be used by regional and municipal authorities to give scientific credence to programs and strategies for social and economic development of Russia's cities. Conclusions The analysis of urbanization trends within the Federal districts of Russia enabled to highlight the following levels: high (the Central, Northwestern, and Ural Federal District), average (the Volga, Siberian, Far Eastern Federal District), low (the Southern Federal District), and very low (the North Caucasian Federal District). The relationship between urbanization and inequality in capital investment was observed in 2002 in all Federal districts of Russia, except for the Southern and Ural Federal District.
Keywords: urbanization, urban population, economic development
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