Effects and Risks of Digital Quality of Life in Russian Regions

Widespread digital transformation significantly changed people's quality of life. We hypothesise that the digital component of people's quality of life had a positive but differential impact on economic growth in Russian regions during 2015-2019. Moreover, economic and institutional risks occurring at the current stage of digital transformation could negatively affect economic development. The research pays special attention to the institutional factor, namely, project management quality and its influence on real gross domestic product (GDP) per capita in Russian regions. Methods of economic research were used such as index, rating, expert evaluation methods as well as regression and panel data models (including those with dummy variables). Transformation assessment was based on an integral index proposed by the authors called the Russian regional index of digital component of people's quality of life (RRIDCPQL). The value of this digital index was increasing during 2015-2019. The hypotheses of statistically significant influence of the digital quality of life, regional and temporal unobserved factors on real GDP per capita in 2015-2019 were confirmed. However, the study rejected the hypotheses of the positive impact of digitalisation on the unemployment rate and on the decrease in the share of government employees. Positive influence of digitalisation on the divorce rate was revealed while its negative influence on economic criminality and real income per capita of the population was partially confirmed. The importance of project management quality of the program "Digital economy of the Russian Federation" for regional development was demonstrated. The research results presenting new data on the growth of digital economy can be used to adjust the implementation of digital projects in Russian regions.