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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)

Aftakhova U.V. State National Research Polytechnic University, Perm, Russian Federation ( uliana_aftakhova@rambler.ru )

Lavrikova Yu.G. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation ( k515l@mail.ru )

Journal: National Interests: Priorities and Security, #1, 2016

Importance 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.


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

Aftakhova U.V. State National Research Polytechnic University, Perm, Russian Federation ( uliana_aftakhova@rambler.ru )

Lavrikova Yu.G. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation ( k515l@mail.ru )

Journal: Regional Economics: Theory and Practice, #5, 2019

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.


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