International Recruitment Seminar (Job talk) with PhD candidate Alexey Makarin, Northwestern University, USA

The next speaker in the FES International Recruitment Seminar is Alexey Makarin, who is a PhD candidate in Economics at Northwestern University, USA
Speaker (Job market candidate): Alexey Makarin, Northwestern University, USA                                                                                                                                                
 
Title (Job market paper): Trading with the Enemy: The Impact of Conflict on Trade Transactions in Non-Conflict Areas

The abstract: This study presents novel evidence on the effects of conflict on trade in non-conflict areas. We examine the context of the ongoing Russian military intervention in Ukraine. In a difference-in-differences framework, we leverage a newly compiled firm-level panel with the universe of Ukrainian trade transactions from 2013 through 2016 and exploit substantial spatial variation in the ethnolinguistic composition of Ukrainian counties. The estimates suggest that Ukrainian firms from counties with fewer ethnic Russians experienced a deeper decline in trade with Russia. We argue that this result stems from increased inter-ethnic tensions and a differential rise in negative attitudes and beliefs about Russia. Evidence indicates that possible mechanisms include consumer boycotts of Russian products, reputational concerns of Ukrainian firms, and a breakdown of trust in contract enforcement. In contrast, we find no evidence for individual-level animosity between firms’ key decision makers or discrimination at the border. We also rule out that the differential decline in trade only arises from economic spillovers, such as refugee flows and destruction of supply chains with conflict areas. 

Time: 13:40-15:00                                                                                                                                                                                                                                                 

Venue: Shabolovka campus, room 3209                                                                                                                                                                                                                             

Working language: English