Tullio Buccellato1 () (Univerisity of Rome Tor Vergata and School of Oriental and Africal Studies, University of London.) Tomasz Mickiewicz () (School of Slavonic and East European Studies, University College London.)
Abstract
Building on earlier work on regional inequality in Russia (Fedorov 2002; Gaddy and Ickes 2005; Bradshaw 2006 and others) we investigate a novel line of research, i.e. demonstrate that the regional oil and gas abundance is associated with high within-region inequality. We argue that this phenomenon is amplified by the following two clusters of factors: on the one hand, by the monopsonistic position of the extracting companies on the local labour markets coupled with geographical relocation of rents via transfer pricing from the extracting regions to the companies headquarters and central government bureaucracy, and, on the other hand, by reduction in financial support for local communities offered by the extracting companies and by inadequate and illtargeted transfers by the government.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL) in its series Working Papers with number
80 Key Words: Inequality, Oil, Regions, Russia JEL classification codes: D31, P25, R11, O18.