Regional Economics: Theory and Practice

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Assessing the impact of social risks on the labor productivity in the region's industrial sector: Evidence from the Perm Krai

Vol. 17, Iss. 5, MAY 2019

Received: 15 September 2015

Received in revised form: 20 September 2015

Accepted: 25 September 2015

Available online: 16 May 2019


JEL Classification: O25, R11, R13, R58

Pages: 881–894

Aftakhova U.V. State National Research Polytechnic University, Perm, Russian Federation

ORCID id: not available

Lavrikova Yu.G. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation

ORCID id: not available

Subject The article overviews social risks arising from the industrial development of territories.
Objectives The research investigates the impact of social risks on labor productivity level in the Perm Krai.
Methods Using methods of a correlation and regression analysis and expert assessment, we studied the impact of social risks arising from the industrial development of the Perm Krai's economy on the region's labor productivity. The labor productivity is regarded as a key economic efficiency indicator during new industrialization.
Results Having surveyed the population in the Perm Krai during 2009–2014, we found out that social risks arising from the region's industrial development had a definitely negative effect on the labor productivity. The average elasticity coefficients for the labor productivity function helped identify social risks of the highest effect. Such risks include a reduction in the population employed in the industrial sector and a decrease in population's savings.
Conclusions and Relevance It is necessary to replace the prevailing innovative and technological concept of industrial development with a socio-technological one, which is focused on an all-round and well-educated personality. Illustrating the Perm Krai, we prove that the industrial development results in under-performance, if social issues are neglected during the upgrade of industrial sectors.

Keywords: social risks, labor productivity, industrial development, new industrialization, region


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