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Oil Windfalls and Regional Economic Performance in Russia

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  • Julia Skretting

Abstract

I construct a novel dataset to investigate the effects of oil income in regions of Russia. My data combines regional level data on oil endowments and a wide range of economic series for 85 geographical regions of Russia. Focusing on exogenous oil windfall gains induced by movements in oil prices, I compare outcomes in oil endowed regions to outcomes in other areas. In doing so, I show that oil resources do not seem to benefit regional economic growth. Indeed, I provide evidence that oil windfalls lead to an expansion of the local public sector and a contraction of the private sector, resulting in lower profitability and a decline in economic growth. Overall, my results indicate that only a small share of revenues benefits the local population and that there are signs of missing money.

Suggested Citation

  • Julia Skretting, 2022. "Oil Windfalls and Regional Economic Performance in Russia," Working Papers No 02/2022, Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School.
    • Handle: RePEc:bny:wpaper:0105
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    File URL: https://hdl.handle.net/11250/3012049
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    References listed on IDEAS

    as
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