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- W4313303421 abstract "Does armed conflict reduce trade, even in noncombat areas, through the destruction of intergroup social capital? We analyze Ukrainian trade transactions before and after the 2014 Russia-Ukraine conflict. In a difference-in-differences framework, we find that Ukrainian firms from districts with fewer ethnic Russians experienced a deeper decline in trade with Russia. This decline is economically signifi-cant, persistent, and can be explained by erosion of intergroup trust. Affected Ukrainian firms suffered a decrease in performance and diverted trade to other countries. Our results suggest that, through social effects, conflict can be economically damaging even away from combat areas. (JEL D74, F14, F51, J15, P31, P33, Z13)" @default.
- W4313303421 created "2023-01-06" @default.
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- W4313303421 date "2023-01-01" @default.
- W4313303421 modified "2023-10-05" @default.
- W4313303421 title "Conflict and Intergroup Trade: Evidence from the 2014 Russia-Ukraine Crisis" @default.
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- W4313303421 doi "https://doi.org/10.1257/aer.20191701" @default.
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