Dying Light: War and Trade of the Separatist-Controlled Areas of Ukraine

Artem Kochnev

No 161, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: 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.

Keywords: costs of war; satellite data; trade; Ukraine crisis; political economy (search for similar items in EconPapers)
JEL-codes: D74 E01 E20 F51 (search for similar items in EconPapers)
Pages: 54 pages including 10 Tables and 18 Figures
Date: 2019-01
New Economics Papers: this item is included in nep-big, nep-cis, nep-mac and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as wiiw Working Paper

Downloads: (external link)
https://wiiw.ac.at/dying-light-war-and-trade-of-th ... ukraine-dlp-4790.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wii:wpaper:161

Ordering information: This working paper can be ordered from
https://wiiw.ac.at

Access Statistics for this paper

More papers in wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw Contact information at EDIRC.
Bibliographic data for series maintained by Customer service ().