@article{ref1,
title="Conflict and intergroup trade: evidence from the 2014 Russia-Ukraine Crisis",
journal="American economic review",
year="2023",
author="Korovkin, Vasily and Makarin, Alexey",
volume="113",
number="1",
pages="34-70",
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 significant, 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.<p /> <p>Language: en</p>",
language="en",
issn="0002-8282",
doi="10.1257/aer.20191701",
url="http://dx.doi.org/10.1257/aer.20191701"
}