Research Paper - Input-Output Analysis of the Ukraine War: A Tool
12 August 2022
A general result is the spatial concentration of aggregate demand, influenced by the distribution of economic activity and 5 Input-Output Analysis of the Ukraine War: A Tool for Assessing the Internal Territorial Impacts of the Conflict 11 population across the regions. [...] The trade matrices, after the inclusion of the import row, !"#$%∗%!,#, consider the sales of each Ukrainian region to the other Ukrainian regions and the purchases of each of them both from domestic and foreign supply regions. [...] The multiplier effect can be decomposed into intraregional (internal multiplier) and interregional (external multiplier) effects, the former representing the impacts on the outputs of sectors within the region where the final demand change was generated, and the latter showing the impacts on the other regions of the system (interregional spillover effects). [...] Similarly, if the forward linkage of region r is larger than that of the other regions, it could be said that an expansion of the output of region r is more essential to the economy than a similar expansion in the output of the other regions, from the point of view of the overall productive activity that it could support. [...] Input-Output Analysis of the Ukraine War: A Tool for Assessing the Internal Territorial Impacts of the Conflict 47 The economic impacts on supply chains following the exclusion of trade relations with Luhansk are varied at the sectoral level.