The impact of energy resources on social development in Russia

Abstract

Various countries are endowed with energy resources differently. It is supposed that the availability of energy resources is a sign of a nation's wealth. However, countries that are richly endowed with energy resources can actually differ significantly from each other in living standards. It is interesting to know how the production and export of energy resources impact on the social sphere of developing countries. There is an existing interest in investigating this problem because of the importance of the production and export of energy resources, for maintaining the standard of living of a population. This article analyzes the impact of the production and export of energy resource, namely of oil on the social sphere in Russia. The Russian fuel and energy sector accounts for about 30% of industrial output, for 32% of consolidated revenues, for 54% of the federal budget, for 54% of exports and for 45% of foreign exchange earnings in Russia. Social services are estimated by the following indicators: the index of Gini, the average wage in the country and the population's savings. The main advantage of using the Gini coefficient is that it measures inequality. Wage also performs important functions; the motivation of employees and providing a living wage. The savings of the population are at the crossroads of interests for citizens and the state. Based on data from 1990 to 2012 on the dynamics of oil production in Russia, the dynamics of oil exports from Russia and the dynamics of the social sphere in Russia are analyzed using the production model. Estimation of the coefficients and their significance has been assessed using statistical methods. By taking the logarithm of the production function; three multiple regression equations that represent the models of the economic processes for the Gini coefficient, average wage and savings were obtained. According to the results of econometric analysis, conclusions about the significance of production, exports and the prices of oil for the development of the social sphere are made. © 2014 WIT Press.