Journal of Siberian Federal University. Humanities & Social Sciences: Local Content of Large Resource Corporations as a Factor of Regional Development

Journal of Siberian Federal University. Humanities & Social Sciences / Local Content of Large Resource Corporations as a Factor of Regional Development

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Issue: Journal of Siberian Federal University. Humanities & Social Sciences. 2015 8 (Supplement)
Authors: Nefedkin, Vladimir I.
Contact information: Nefedkin, Vladimir I.:Center for Resource economics Institute of Economics and Industrial Engineering of the SB RAS 17 Pr. Akademika Lavrentyeva, Novosibirsk, 630090, Russia; E-mail:
Keywords: localization; local content; regions; large resource corporations; regional policy; distribution of effects
Abstract: There are examples of successful state regulation of local content in the oil and gas sector in several countries. In Russia, this practice is not widespread, and the existing system of relations between the federal government, large corporations and regions is not conducive to the economic development of Siberia and the Far East. To characterize the distribution of the value added produced by major resource corporations, the author introduces the concept of «extraterritorial» and «local» components and calculates the tax localization and financial resources redistribution indices. This study reveals a steady downward trend in tax localization in the regions of Siberia, where the impact of large resource companies is particularly strong. The observed changes can be explained by the peculiarities of the Russian tax legislation as well as usage of specific corporate methods to manage financial results and cash flows of the regional companies included in the large «extraterritorial» corporations.. The impact of these factors ultimately leads to a slower economic growth and exacerbates social problems in the so-called «resource» regions. The solution to this problem involves the transition to a fundamentally new regional policy. Such a policy should be based on a system of regular control of the local content in the development of the natural resources of Siberia and the Far East
Pages: 108-121
Paper at repository of SibFU: https://elib.sfu-kras.ru/handle/2311/16651

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