Research on the Impact of Geopolitical Instability on Russian Trade

This study examines how global and country- specific geopolitical instability affects Russian trade using data from 1996 to 2021. Geographically, Western Europe benefits from global instability but faces challenges from partner-specific instability, contrasting with Eastern Europe and Asia.

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• 1 A panel regression model analyzes trade between Russia and its 15 top trading partners, exploring both direct and indirect effects.
• 2 The analysis focuses on how accumulated foreign direct investment (FDI) and exchange rate fluctuations mediate these relationships.
• 3 The findings reveal that global geopolitical instability decrease Russian trade by 0.0558.

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