Logo image
Economic sanctions and agricultural trade
Journal article   Open access   Peer reviewed

Economic sanctions and agricultural trade

Mario Larch, Jeff Luckstead and Yoto V. Yotov
American journal of agricultural economics, v 106(4), pp 1477-1517
2024
url
https://doi.org/10.1111/ajae.12473View
Published, Version of Record (VoR) Open CC BY-NC-ND V4.0

Abstract

Economic sanctions are more popular than ever. But do they affect agricultural trade? Combining two new datasets and capitalizing on the latest developments in the empirical structural gravity literature, we investigate the effects of sanctions on international trade of agricultural products. We find that trade sanctions impede agricultural trade, whereas other sanctions do not show any significant impact. Complete trade sanctions have led to about a 67% decrease in the agricultural trade between the sanctioned and sanctioning countries, or a corresponding tariff equivalent of 25%, and we also obtain significant estimates for partial sanctions. At the industry level, we find substantial heterogeneity depending on the sanctioning and sanctioned countries, the type of sanctions used, and the direction of trade flows. The 2014 sanctions on Russia substantially decreased Russia's agricultural trade, mainly due to reduced trade with the EU but also due to reduced trade with other countries. Although no definitive evidence exists that sanctions alter the actions of governments of receiving countries, this paper provides broad evidence that sanctions hamper agrifood trade and hurt producers, consumers, and real output.

Metrics

40 Record Views
14 citations in Scopus

Details

UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#17 Partnerships for the Goals
#8 Decent Work and Economic Growth

Source: SDGs in the Output

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Agricultural Economics & Policy
Economics
Logo image