Planning for economic integration: addressing trade challenges posed by the Ukraine-Russia conflict in Europe

Abstract

This study aims to establish a connection between Russian-Ukraine’s current state of affairs and its impact on trade in the European Union and East Asia-Pacific (EAP) regions. Russia- Ukraine conflict impacts EU and EAP trade openness due to rising military spending. Further, escalating sanctions against Russia would negatively affect trade in these regions. War media coverage may cause temporary trade decline in EU and EAP, but recovery expected in the long run. EU imports and exports flow would be significantly disrupted by conflict, irrespective of country’s financial situation. Study findings can aid policymakers in assessing trade threats and developing mitigation strategies.

Keywords

• russia-ukraine war
• military expenditures
• economic sanction
• media coverage
• trade
• europe-asia
• panel ardl approach