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Global Economic Consequences of Russian Invasion of Ukraine
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Author(s):
Peterson K. Ozili
(Central Bank of Nigeria, Nigeria)
Copyright:
2024
Pages:
29
Source title:
Dealing With Regional Conflicts of Global Importance
Source Author(s)/Editor(s):
Piotr Pietrzak
(Sofia University, Bulgaria)
DOI:
10.4018/978-1-6684-9467-7.ch010
Keywords:
Ethics and Social Responsibility
/
Information Science Reference
/
Political Science
/
Social Sciences & Humanities
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Global Economic Consequences of Russian Invasion of Ukraine
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Abstract
This chapter 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.
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