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Trade dependence and stock market reaction to the Russia‐Ukraine war

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  • Reza Tajaddini
  • Hassan F. Gholipour

Abstract

Using data from 83 countries, we show that the decline in the value of stock market indices in response to the Russia‐Ukraine war was sharper in countries that have stronger trade ties (both exports and imports) with Russia and Ukraine. We also find the relationship between trade dependency and market drop is weaker in countries with more trade openness.

Suggested Citation

  • Reza Tajaddini & Hassan F. Gholipour, 2023. "Trade dependence and stock market reaction to the Russia‐Ukraine war," International Review of Finance, International Review of Finance Ltd., vol. 23(3), pages 680-691, September.
    • Handle: RePEc:bla:irvfin:v:23:y:2023:i:3:p:680-691
    DOI: 10.1111/irfi.12414
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    References listed on IDEAS

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