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Invisible chains of conflict: economy-wide spillovers from an agricultural shock in Ukraine – mixed input–output evidence

Author

Listed:
  • Jérôme Verny
  • Youssef Bouazizi
  • Ouail Oulmakki
  • Luc Savard

Abstract

This article quantifies how a conflict-related agricultural supply shock propagates through Ukraine’s economy. Instead of the conventional demand-driven Leontief model, we use a mixed input – output model that introduces the shock directly as a capacity constraint in agriculture. In our central scenario, a 25% reduction in the agricultural workforce leads to a 4.6% decline in GDP, and impacts spread rapidly beyond farming. Sectors highly dependent on agricultural inputs are hit hardest, with chemicals (−30%) and motor vehicles (−28.8%) showing the largest losses, while public services remain comparatively stable. Sensitivity and robustness checks indicate near proportional effects, consistent with fixed-coefficient technologies and short-run rigidities. The results reveal a hierarchy of vulnerabilities and provide policy-relevant benchmarks to help secure critical supply chains and strengthen economic resilience against cascading shocks.

Suggested Citation

  • Jérôme Verny & Youssef Bouazizi & Ouail Oulmakki & Luc Savard, 2026. "Invisible chains of conflict: economy-wide spillovers from an agricultural shock in Ukraine – mixed input–output evidence," Economic Systems Research, Taylor & Francis Journals, vol. 38(2), pages 163-174, April.
  • Handle: RePEc:taf:ecsysr:v:38:y:2026:i:2:p:163-174
    DOI: 10.1080/09535314.2025.2607545
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