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Global Economic Consequences of Russian Invasion of Ukraine

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  • Ozili, Peterson K

Abstract

This paper investigates the global economic consequence of the Russia-Ukraine war over a four-month period from December 2021 to March 2022. Russia invaded Ukraine on the 24th of February 2022. The study used the Pearson correlation and two-stage least square regression methods to assess the impact of Russian invasion of Ukraine on the global economy. It was observed that stock prices plunged on the day of the invasion. The Russian invasion of Ukraine and the COVID-19 pandemic jointly led to a significant increase in the world price of food and crude oil. The rise in the world food price index after the invasion was driven by a significant increase in the price of dairy and oils. The rise in inflation in Russia and Ukraine after the invasion was followed by a rise in inflation in countries that imposed severe sanctions on Russia, and in countries that were not involved in the conflict in any way.

Suggested Citation

  • Ozili, Peterson K, 2024. "Global Economic Consequences of Russian Invasion of Ukraine," MPRA Paper 120781, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:120781
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Russia; Ukraine; War; Inflation; Crisis;
    All these keywords.

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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