Author(s)

Yangguang Shi, Rongsheng Zhang, Xuedong Song

Corresponding Author

Rongsheng Zhang

ABSTRACT

In this paper, our study sheds light on the Russia-Ukraine conflict makes a difference to 5 variables, containing the S&P 500 index, the geopolitical risk index, Russia Trading System Index, the West Texas Intermediate index, and the economic policy uncertainty index. We use the line plot to demonstrate the change in the accurate index. The results show that the conflict makes a huge difference to the economy in a large degree. Furthermore, the connection between the S&P 500 index, the geopolitical risk index, Russia Trading System Index, the West Texas Intermediate index, and the economic policy uncertainty index respectively is investigated by the study before and after the Russo-Ukrainian War, from June 20, 2021, to June 4, 2023. To achieve the goals, we apply wavelet coherence to reveal the relationship between different two variables. We conclude a closed cycle that the local safety situation will influence the development of the economy, while the economic conditions play a role in the fluctuation of the geopolitical risk index.

KEYWORDS

Russo-Ukrainian War, global economy, oil prices, geopolitical risk, policy uncertainty