Fragmentation of Globalized Economy and Macroeconomic Cost of the War in Ukraine
Zhyvko M. A.

Zhyvko, Maksym A. (2024) “Fragmentation of Globalized Economy and Macroeconomic Cost of the War in Ukraine.” The Problems of Economy 3:15–30.
https://doi.org/10.32983/2222-0712-2024-3-15-30

Section: World economy and international relations

UDC 339.9:330.34(477)

Abstract:
This article provides a comprehensive analysis of the fragmentation of the globalized economy and the macroeconomic costs stemming from the war in Ukraine. The conflict has had far-reaching consequences, disrupting global supply chains, trade flows, and economic stability. The research delves into the specific impacts on various sectors, including energy, agriculture, and technology, showcasing the intricate interdependencies of the modern global economy and how regional conflicts can reverberate worldwide. Using a blend of quantitative data and qualitative insights, the article details the significant disruptions in energy markets, which have led to soaring oil and gas prices and exacerbated inflationary pressures globally. It also examines the critical blockade of Ukrainian agricultural exports, which has heightened food security concerns, especially in developing countries. Moreover, the article explores the broader implications for international trade and investment. It discusses how the fragmentation of global supply chains has forced businesses to reevaluate their reliance on single-source suppliers, resulting in a reconfiguration of production networks. The war has also highlighted vulnerabilities in global financial systems, with increased market volatility and heightened risk aversion among investors. In addressing these challenges, the article emphasizes the importance of coordinated policy responses and international cooperation. It underscores the need for diplomatic efforts to restore stability and mitigate the adverse economic effects of the conflict. The findings advocate for enhanced economic resilience through collaborative international strategies, recognizing the necessity of a united approach in addressing the complexities of geopolitical conflicts in an interconnected world.

Keywords: fragmentation, globalized economy, macroeconomic costs, war in Ukraine, supply chain disruption, energy markets, agricultural exports, trade flows, economic stability, geopolitical risks, international cooperation.

Fig.: 7. Tabl.: 3. Bibl.: 32.

Zhyvko Maksym A. – Candidate of Sciences (Economics), Deputy Director, B. Havrylyshyn Education and Research Institute of International Relations, West Ukrainian National University (11 Lvivska Str., Ternopil, 46009, Ukraine)
Email: m.zhyvko@wunu.edu.ua

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