WHAT ARE DEVELOPMENT DRIVERS FOR RUSSIAN RESOURCE-ABUNDANT REGIONS
Resource abundance is associated with «resource curse» risks. Several channels of transmission from resource-dependence to sustainable economic growth have been discussed in recent literature. One of these channels involves economy transformation when mineral extraction industries interact with high-tech sector. A favorable investment climate should be provided for new industries in resource-abundant regions through infrastructure development and tax incentives for priority sectors. Regional modernization policy needs financial sources. The aim of the study is to analyze financial drivers for resource-rich regions development. Our study is based on statistical data from twenty two Russian resource-abundant regions. We demonstrate the uneven distribution of financial flows from the extraction of mineral resources in Russia. The most part of export earnings from natural resources sales is concentrated in central Russian regions that are not involved in resource extraction. However, resource-rich regions provide more than half of tax revenues to the Federal budget, and as a result they have scarce budgets. A significant part of natural rent is accumulated outside the resource-rich regions. This means the regions don't have their own drivers of development.