Impact of the oil and gas industry on the economy of producing countries

Abstract

This paper discusses in detail the resource dependency of economies in countries with a high level of hydrocarbon production and income from the export of raw materials; the consequences associated with “resource dependence”; and reasons for their occurrence, as well as possible ways to overcome them. The authors establish the fact that in recent years there has been a “negative” multiplicative effect from the development of Russia’s oil and gas complex. Therefore, the goal is to identify factors of “resource dependence” that contribute to economic growth, to generalize the results of the study at the global level for key oil-exporting countries, and to draw conclusions for the Russian economy. As a methodological basis for the study, a panel data analysis method was chosen, which allows for taking into account the influence of both the dynamics and structure of changes in resource dependence factors in a regional context. The informational basis of the study was made by countries exporting hydrocarbon raw materials and classified by macro-regions, level of economic development, and degree of development of democracy. According to the analysis of panel data, the influence of resource dependence factors is not always of high importance on the economy of oil-exporting countries. The economic growth of many countries is more dependent on factors of sustainable growth that are consistent with the goals of sustainable development. The study allows us to conclude that it is advisable for countries that are currently in a condition of resource dependence to revise their development policies in the direction of differentiating the economy, primarily using the advantages of resource rent for the development of processing and manufacturing industries, as well as for the development of green energy. The results of the study can provide an analytical basis for discussions on the effective development of the oil and gas complex of Russia and the world, taking into account modern challenges and threats to sustainable development.