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The article discusses some theoretical issues of city competitiveness analysis, paying a specific attention to the process of formation of city competitiveness and to key factors that influence the level of city competitiveness. It is emphasized that most contemporary methodologies that are being used to analyze competitiveness of subjects of international or national level are not relevant for analysis of subjects at subnational level (city). After a detailed analysis of different theories and approaches on the subject, the authors suggest a new model for analysis of city competitiveness. Most important factors representing both external and internal city environment as well as elements constituting each of the factors are presented in the model.
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