BUSINESS SPECIALIZATION AS A DRIVER OF MONOTOWN DEVELOPMENT

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Olga N. Vladimirova1, Svetlana B. Ilyashenko2

1, 2Plekhanov Russian University of Economics, Moscow, Russia

1olga.ovladimirova24@yandex.ru, ORCID 0000-0002-8631-4697

2Ilyashenko.sb@rea.ru, ORCID 0000-0002-2589-0797

Abstract. This paper investigates how the specialization of the main employer in a monotown influences its socio-economic development. We conceptualize specialization as a strategy through which a business deepens its competitive advantages and integrates into global value chains. Using the Polar Division of Norilsk Nickel and the city of Norilsk as a case study, we show how this strategy, which is driven by export orientation, investments in logistics, and human capital development, shapes the trajectory of the local economy. Our methodology combines comparative analysis with economic and statistical tools, focusing on three main transmission channels: fiscal policy, income, and infrastructure. The results highlight a fundamental duality. On the one hand, specialization ensures fiscal stability, high household incomes, and the development of a unique infrastructure. On the other hand, it makes the town vulnerable to global commodity price fluctuations, geopolitical risks, and sanctions. We conclude by arguing for a balanced policy approach: one that maintains the competitiveness of the city’s primary taxpayer while diversifying the monotown economy to ensure resilience.

Keywords: monotown, primary taxpayer, international business, socio-economic development, sanctions

For citation: Vladimirova O. N., Ilyashenko S. B. Business specialization as a driver of monotown development. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2026, no. 2,  pp. 66–82. doi:10.37614/2220-802X.2.2026.92.005.

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