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Socio-Economic Impact of Sakhalin Tunnel Project on the Region

Student: Filipchik Anna

Supervisor: Markus Gebauer

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Final Grade: 7

Year of Graduation: 2019

This study evaluated socio-economic effects of Sakhalin Tunnel project on the residents of the region. The method included evaluation of social well-being with regards to investment in construction. A system of linear and log-linear equations simultaneously relating to economic aspects and life satisfaction was regresses on the variables of choices: construction investment (million roubles), GRP (million roubles), population (thousands of people), comparative rate of natural resources extraction (as a percentage to the previous year). The regression was conducted on the regional panel data for a consecutive 10 year period from 2000 to 2010. The data was taken from the Federal State Statistics Service. The results showed a positive impact from a large investment project on economic variables and well-being, specifically an increase in average monthly income, investment in research and development and decrease in the crime rate. The results were extrapolated for the regional tunnel project.

Full text (added June 13, 2019)

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