Sociology and Anthropology Vol. 2(3), pp. 95 - 105
DOI: 10.13189/sa.2014.020304
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Northern Investment Risks in Human Capital Formation: Russian Experience

Elena Kotyrlo ^*
Aging and Living Conditions Centre, Umeå University, Umeå, Sweden

ABSTRACT

Historically, the northern Russian regions have been an object of a special socio-economic policy, united by extreme climate conditions, geographical isolation and rich natural resources reserves. Northern investment risks in human capital formation are proposed in the paper, as an indicator of investment conditions, which can be employed to improve policy of human development in the northern regions of Russia. Northern investment risks encompass uncertainties associated with extreme northern climate conditions, historically determined allocation of resources in the Russian northern regions and restrictions on labour mobility caused by geographic isolation and administrative rules. Investment risks in human capital, its measurement, methods of estimation are considered. Empirical estimation illustrates higher investment risks in the northern regions. Method of estimation can be employed widely to compare investment conditions in imperfect economies. Policy of insurance of private investment risks and current restrictions on it’s implementation in the northern regions of Russia are discussed.

KEYWORDS
The Russian northern regions, Human Capital Formation, Investment Risk, Lifetime Labour Supply, Northern Systematic Investment Risk, Returns on Investment

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Elena Kotyrlo , "Northern Investment Risks in Human Capital Formation: Russian Experience," Sociology and Anthropology, Vol. 2, No. 3, pp. 95 - 105, 2014. DOI: 10.13189/sa.2014.020304.

(b). APA Format:
Elena Kotyrlo (2014). Northern Investment Risks in Human Capital Formation: Russian Experience. Sociology and Anthropology, 2(3), 95 - 105. DOI: 10.13189/sa.2014.020304.