EconPapers    
Economics at your fingertips  
 

Regional risk-sharing in Ukraine

Jarko Fidrmuc (), Serhiy Moroz () and Fabian Reck ()
Additional contact information
Serhiy Moroz: Slovak University of Agriculture in Nitra
Fabian Reck: Zeppelin University Friedrichshafen

Empirica, 2021, vol. 48, issue 3, No 4, 645-660

Abstract: Abstract This paper analyzes the impact of ethnic heterogeneity and military conflict on the degree of regional consumption risk-sharing in Ukraine. Ethnicity and violent conflicts can influence risk-sharing e.g. through social capital, ethnic fractionalization, migration, and remittances. The sample consists of 25 Ukrainian oblasts and covers the highly volatile period from 2003 to 2016. Our results suggest that the degree of consumption risk-sharing is comparably high, between 70 and 80% on average. Moreover, consumption risk-sharing is significantly higher in the regions with a large Russian minority, which are enjoying special treatment by Russia. By contrast, the degree of financial development, as proxied by deposit and loan share in GRP, does not significantly affect the regional degree of consumption risk-sharing. Furthermore, we apply spatial models to control for spatial dependence across regions. Results are confirmed and it is shown that spatial correlation is important. Finally, we show that the recent geopolitical conflict in east Ukraine changed the regional degree of consumption risk-sharing.

Keywords: Ukraine; Risk-sharing; Ethnic heterogeneity; Social capital; Remittances; Spatial regression (search for similar items in EconPapers)
JEL-codes: E21 E32 P25 R12 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10663-020-09500-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Regional risk-sharing in Ukraine (2020) Downloads
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:kap:empiri:v:48:y:2021:i:3:d:10.1007_s10663-020-09500-7

Ordering information: This journal article can be ordered from
http://www.springer. ... ration/journal/10663

DOI: 10.1007/s10663-020-09500-7

Access Statistics for this article

Empirica is currently edited by Fritz Breuss and Fritz Breuss

More articles in Empirica from Springer, Austrian Institute for Economic Research, Austrian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-01-11
Handle: RePEc:kap:empiri:v:48:y:2021:i:3:d:10.1007_s10663-020-09500-7