The effect of imbalance in resource management on regional social economic development

Abstract

Socio-economic consequences in oil-producing regions are defined by the balance in subsoil use developed under the influence of different factors. The research hypothesis suggests that imbalances in resource management, the key criterion of which is a balance between reserve addition and oil recovery, differentially influence the social and economic development of the regions involved, the choice of which is conditioned by similarity of geologic, industrial and economic criteria. The research methods are descriptive statistics, variance analysis (ANOVA), Cobb-Douglas regression function, Data Envelopment Analysis with MPI (Malmquist productivity index). The research results have shown that the part of reserve addition and oil recovery in per capita gross regional product vary from negative to positive, which is explained by the degree of depletion and exploration of a field and is a result of the effect of existing institutional environment. According to the DEA method, the efficient boundaries are formed by the Russian Federation entities where the potential of oil-and-gas industry has not been fully used as a driving force of socio-economic development, which is supported by the results of the Cobb-Douglas regression model and variance analysis. The research results are an additional confirmation of interregional imbalance in socio-economic development, one of the factors of which is an imbalance in resource management.