The role of extractive industries in developing peripheral Arctic regions of Russia and Canada
DOI:
https://doi.org/10.21638/spbu05.2021.203Abstract
Russian Federation and Canada are the largest arctic powers that have similar features in evolving their Arctic zones. In the mid-1920s both countries formalized their rights to the northern territories. Russian and Canadian arctic regions are located in harsh climatic zones,geographically distant from national political and business centers, poorly populated, and rich in natural resources. At the same time, there are obvious differences in political institutions,“core-periphery” relationships, business organization, and social activities of aboriginal people and newcomers. The purpose of this study is a comparative evaluation how the rich resource base and industrial production impact on the socio-economic development of the Arctic regions of Russia and Canada. To reach the goal authors use the official statistical sources of the Russian Federation and Canada. Case study method, comparative analysis, and econometric calculations are applied. As a result similar and distinctive features of the industrial development of the Arctic regions of these countries were identified. It can be explained, first of all, by the institutional characteristics of Russia and Canada. Comparing an evidence of the leading extractive companies completed the empirical analysis. Authors concluded that
the regions under consideration are characterized by a high or medium share of the extractive industry in the regional economy. Specialization in natural resources extraction and primary processing does not have a negative impact on the economic development of the territories. However, outer companies are engaged in this business that increases the dependence of the regional economy on the conjuncture of world markets. The article investigates in empirical studying common features of the extractive industry in the peripheral Russian and Canadian Arctic territories and its impact on the socio-economic development of these regions.
Keywords:
Russian arctic regions, Canadian arctic territories, periphery, extracting industry, resource curse
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References
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