The Demographic Factor Impact on the Economics of the Arctic Region

Irina Gennadyevna Gerasimova,Ekaterina Ilinichna Golovina,Irina Sergeevna Oblova

doi:10.3390/resources10110117

Irina Gennadyevna Gerasimova, Ekaterina Ilinichna Golovina + Show 1 more

Open Access

https://doi.org/10.3390/resources10110117

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Abstract

Decline of the international price of some minerals, such as coal, has changed the living standards of the Arctic population leading to its considerable out-migration because of the drop in profitability not only in mining, but also in related industries. Being essential for the sustainable economic development, the highly qualified specialists are currently a crucial issue in the Arctic. This research employs demographic and economic indicators to address the gap in the study of demographic challenges for the Arctic administrative-territorial entities. Special attention is paid to the comparative analysis of the population dynamic in the Russian and global Arctic regions. As part of this study, the impact of the demographic factor on the economic indicators of the region was assessed on the basis of GRP data calculation. Special attention is paid to the analysis of the major trends in the Arctic labour market. Based on the results of the assessment, an increase in GRP was determined with the simultaneous decrease in the Arctic population. The current demographic situation in the Arctic regions in the context of gender factors was reviewed. It should be noted that the article contains exceptions and the causes of the phenomena described. The results of the research may contribute to better understanding of regional variation and trends in socio-economic development of the Arctic as well as the stabilisation of the Arctic population.

Highlights

The Arctic region has gained its growing geopolitical and global economic significance due to the wealth of mineral resources, the improvement of shipping between the countries of Europe, Asia, and North America as well as increasing global concern about the environment in the face of changing climate
The results showed that the less diversified the economy of the Arctic territory is, as well as the greater the share of mining that is there, the more product it produces per resident
As part of the analysis of the demographic factor impact on gross regional product (GRP), the authors grouped these indicators by administrative-territorial entities of the Russian Arctic from 2010 to 2019

Summary

Introduction

The Arctic region has gained its growing geopolitical and global economic significance due to the wealth of mineral resources, the improvement of shipping between the countries of Europe, Asia, and North America as well as increasing global concern about the environment in the face of changing climate. Given the fact that the current ecological, social, and economic challenges in the Arctic require both top-rank engineers to realise the promise of the Arctic and maximisation of economic benefits at the regional level. Ensuring of the sustainable economic and social advancement of the Arctic is impossible without effective economic management of the region. The present study intends to contribute to filling this gap by presenting a study of economic performance of Arctic administrative-territorial entities on a global and regional scale depending on their local population. The relevance of the study is provided by the current boost in exploration, construction activities, and an urgent need for population stabilisation in the Russian Arctic. As a matter of fact, the Russian Arctic population accounts for only 1.6%. GRP per capita in the Russian Arctic region is much lower than in any other Arctic region in the world

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