Subject The article deals with searching for ways to change the situation in single-industry towns, to develop their adaptability to transformation of environment. Objectives The purpose of the study is to create an economic-mathematical model to forecast social and economic development of monotowns. Methods The paper employs econometric methods to analyze the influence of endogenous and exogenous factors on socio-economic condition of a company town. Results The study provides an empirical evidence that the share of those employed by the city-forming enterprise negatively affects the economic and social status of company towns. Road density and investments in the budget of company towns have a positive impact on socio-economic condition. Import quota and GDP per capita in the region have positive influence on social status of company towns. The analysis of determination coefficients in the obtained models enable to conclude that endogenous factors have a greater impact on economic and social status of company towns than exogenous ones. Conclusions The presented system of economic and mathematical models has powerful predictive capabilities. Reducing the share of employment in the city-forming enterprise by 2.04 percent will ensure the growth of industrial production by 1 percent. Reducing the share of employment in the city-forming enterprise by 0.45 percent with an increase in the length of paved roads by 0.16 percent will boost local budget revenues per capita by 1 percent.
Keywords: single-industry city, monotown, city-forming enterprise, backbone enterprise, development forecast
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