Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro area
The conflict between Russia and Ukraine that started in March 2014 led Western countries and Russia to impose economic sanctions on each other, including the euro zone members. The paper investigates the impact of the sanctions on the real side of the economies of Russia and the euro area. The effec...
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Online Access: | http://dx.doi.org/10.1080/1406099X.2018.1547566 |
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doaj-c022336a24c94a4f83df1c82895507f62020-11-25T01:30:50ZengTaylor & Francis GroupBaltic Journal of Economics1406-099X2334-43852019-01-01191395110.1080/1406099X.2018.15475661547566Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro areaKonstantin A. Kholodilin0Aleksei Netšunajev1DIW BerlinElisa Eesti AS and Tallinn University of TechnologyThe conflict between Russia and Ukraine that started in March 2014 led Western countries and Russia to impose economic sanctions on each other, including the euro zone members. The paper investigates the impact of the sanctions on the real side of the economies of Russia and the euro area. The effects of sanctions are analyzed with a structural vector autoregression. To pin down the effect we are interested in, we include an index that measures the intensity of the sanctions in the model. The sanction shock is identified and separated from the oil price shock by narrative sign restrictions. We find weak evidence that Russian and euro area GDPs declined as a result of the sanctions. The effects of the sanctions are also small for the real effective exchange rate.http://dx.doi.org/10.1080/1406099X.2018.1547566Political conflictsanctionseconomic growthRussiaeuro areastructural vector autoregression |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Konstantin A. Kholodilin Aleksei Netšunajev |
spellingShingle |
Konstantin A. Kholodilin Aleksei Netšunajev Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro area Baltic Journal of Economics Political conflict sanctions economic growth Russia euro area structural vector autoregression |
author_facet |
Konstantin A. Kholodilin Aleksei Netšunajev |
author_sort |
Konstantin A. Kholodilin |
title |
Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro area |
title_short |
Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro area |
title_full |
Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro area |
title_fullStr |
Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro area |
title_full_unstemmed |
Crimea and punishment: the impact of sanctions on Russian economy and economies of the euro area |
title_sort |
crimea and punishment: the impact of sanctions on russian economy and economies of the euro area |
publisher |
Taylor & Francis Group |
series |
Baltic Journal of Economics |
issn |
1406-099X 2334-4385 |
publishDate |
2019-01-01 |
description |
The conflict between Russia and Ukraine that started in March 2014 led Western countries and Russia to impose economic sanctions on each other, including the euro zone members. The paper investigates the impact of the sanctions on the real side of the economies of Russia and the euro area. The effects of sanctions are analyzed with a structural vector autoregression. To pin down the effect we are interested in, we include an index that measures the intensity of the sanctions in the model. The sanction shock is identified and separated from the oil price shock by narrative sign restrictions. We find weak evidence that Russian and euro area GDPs declined as a result of the sanctions. The effects of the sanctions are also small for the real effective exchange rate. |
topic |
Political conflict sanctions economic growth Russia euro area structural vector autoregression |
url |
http://dx.doi.org/10.1080/1406099X.2018.1547566 |
work_keys_str_mv |
AT konstantinakholodilin crimeaandpunishmenttheimpactofsanctionsonrussianeconomyandeconomiesoftheeuroarea AT alekseinetsunajev crimeaandpunishmenttheimpactofsanctionsonrussianeconomyandeconomiesoftheeuroarea |
_version_ |
1725089432617353216 |