Open AccessThe Resource-Dependent Model of Economy in Russia: Regional Perspective
Author(s) -
И. Л. Беилин
Publication year - 2021
Publication title -
žurnal èkonomičeskoj teorii
Language(s) - English
Resource type - Journals
ISSN - 2073-6517
DOI - 10.31063/2073-6517/2021.18-4.10
Subject(s) - resource curse , revenue , business , volatility (finance) , commodity , economy , profit (economics) , government (linguistics) , economics , economic policy , finance , natural resource , political science , linguistics , philosophy , law , microeconomics
The study focuses on the problems faced by Russian regions in their interactions with oil and gas companies. The relevance of the study is determined by the increased volatility of oil and fuel prices in the world commodity markets and the high dependence of the national and regional Russian economies on these prices. The purpose of the study is to assess the potential of the resourcedependent model of economy by using the method of regression analysis and the data on the Russian regions’ GRP. Importantly, we look at the regional rather than national level of the economy, which distinguishes our study from other similar research on the resource curse. The study looks at the case of the Republic of Tatarstan in the Volga Federal District and the dynamics of its GRP. It is shown how the regional government’s policies affect the development of the oil company ‘Tatneft’. This company plays an important role in the economy of the region since the profit tax it pays constitutes a large part of the regional government’s revenue. In other Russian regions, however, regional governments have little leverage in their relationships with oil companies since the largest oil companies mostly operate on the federal level, which means that their mineral extraction taxes and export duties go to the federal rather than regional budgets. Thus, one of the key problems that needs to be addressed is the considerable degree of uncertainty in the relationship between regional governments and large oil companies: for example, much uncertainty surrounds the question of where their taxes will go in the future as in the case of the merger of the large holding company ‘TAIF’ and ‘Sibur Holding’ in 2021. Our research findings can provide a foundation for policies aimed at developing performance-based incentives for the oil and gas industry in regions. Our findings can also be used by the management of oil companies to enhance the effectiveness of their investment in high-tech innovative projects.