Dying Light: War and Trade of the Separatist-Controlled Areas of Ukraine
By: Kochnev, Artem.
Material type: BookSeries: wiiw Working Papers: 161Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2019Description: 54 S., 10 Tables and 18 Figures, 30cm.Subject(s): costs of war | satellite data | trade | Ukraine crisis | political economyCountries covered: Ukrainewiiw Research Areas: Macroeconomic Analysis and Policy | Labour, Migration and Income Distribution | Regional DevelopmentClassification: D74 | E01 | E20 | F51 Online resources: Click here to access online Summary: The paper investigates how war and the war-related government policies affected economic activity of the separatist-controlled areas of Ukraine. The paper applies a quasi-experimental study design to estimate the impact of two events on the separatist-controlled areas: the introduction of the separatist control and the introduction of the second round of the trade ban, which was imposed by the government of Ukraine on the separatist-controlled territories in 2017. Using a difference-in-difference estimation procedure that controls for the yearly and monthly effects, individual fixed effects, and the region-specific time shocks, the study finds that the separatist rule decreased the economic activity by 38% in the Donetsk region and 51% in the Luhansk region according to the preferred specifications. At the same time, the trade ban of the year 2017 against the major industrial enterprises of the separatist-controlled areas decreased luminosity by 20%. The paper argues that the trade disruptions due to the war actions were nested within the negative effect of the separatist rule and accounted for half of it.Item type | Current library | Call number | Status | Date due | Barcode | |
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Paper | WIIW Library | 5.700/161 (Browse shelf(Opens below)) | Available | 1000010004790 |
The paper investigates how war and the war-related government policies affected economic activity of the separatist-controlled areas of Ukraine. The paper applies a quasi-experimental study design to estimate the impact of two events on the separatist-controlled areas: the introduction of the separatist control and the introduction of the second round of the trade ban, which was imposed by the government of Ukraine on the separatist-controlled territories in 2017. Using a difference-in-difference estimation procedure that controls for the yearly and monthly effects, individual fixed effects, and the region-specific time shocks, the study finds that the separatist rule decreased the economic activity by 38% in the Donetsk region and 51% in the Luhansk region according to the preferred specifications. At the same time, the trade ban of the year 2017 against the major industrial enterprises of the separatist-controlled areas decreased luminosity by 20%. The paper argues that the trade disruptions due to the war actions were nested within the negative effect of the separatist rule and accounted for half of it.