Russian Export Strategy and Social Sector: Consequences of Resource-Oriented Exports on Population of Russia

Abstract

This paper presents the analysis of the Russian resource-oriented export strategy. Focusing on the consequences on the population of Russia the relationship between the export strategy of Russia and the social sector is examined. Based on data between 1990 and 2012 the causal relationship between the Russian production and export of oil, price of oil at the world market, and dynamics of the social sector, including the GINI index, average wage, savings of the households, and the development of fuel and energy complex is analyzed. The results show that the export of raw materials can significantly improve the development of the Russian social sector under the condition of growing demand for the energy resources. The results suggest that the country with vast oil and gas reserves should target the policy of restricting the exports and stimulating its consumption within the economy.

DOI: 10.5901/mjss.2015.v6n5s2p473