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On the heterogeneous effects of sanctions on trade
Journal article   Open access   Peer reviewed

On the heterogeneous effects of sanctions on trade

Gabriel Felbermayr, Constantinos Syropoulos, Erdal Yalcin and Yoto V. Yotov
The Canadian journal of economics, v 58(1), pp 247-280
Feb 2025
url
https://doi.org/10.1111/caje.12754View
Published, Version of Record (VoR) Open

Abstract

Business & Economics Economics Social Sciences
With the help of a new, comprehensive sanctions database and utilizing the latest developments in the structural gravity literature, we estimate the effects of economic sanctions on international trade. We demonstrate that the average effects of sanctions hide significant heterogeneity depending on the type of sanctions considered, their duration, objectives and sender types. We also zoom in on the sanctions against Iran. We find that their effects are significant but also widely heterogeneous across sanctioning countries, even within the European Union, and depend on the direction of trade. We complement the aggregate analysis with estimates for 170 sectors, showing that sanctions have been effective in decreasing bilateral trade at the sectoral level while the effects vary significantly across sectors and across complete versus partial trade sanctions. Les effets h & eacute;t & eacute;rog & egrave;nes des sanctions impos & eacute;es sur le commerce. & Agrave; l'aide d'une nouvelle base de donn & eacute;es compl & egrave;te sur les sanctions et en utilisant les plus r & eacute;centes constatations de la litt & eacute;rature sur la gravit & eacute; structurelle, nous estimons les effets des sanctions & eacute;conomiques sur le commerce international. Nous d & eacute;montrons que les effets moyens des sanctions cachent une grande h & eacute;t & eacute;rog & eacute;n & eacute;it & eacute; selon le type de sanction envisag & eacute;, sa dur & eacute;e, ses objectifs et le type d'& eacute;metteur. Nous nous concentrons & eacute;galement sur les sanctions impos & eacute;es & agrave; l'Iran. Nous constatons que leurs effets sont importants, mais aussi tr & egrave;s h & eacute;t & eacute;rog & egrave;nes selon le pays imposant les sanctions, m & ecirc;me au sein de l'Union europ & eacute;enne, et qu'ils d & eacute;pendent de la direction du commerce. Nous compl & eacute;tons l'analyse globale par des estimations dans 170 secteurs, montrant que les sanctions ont & eacute;t & eacute; efficaces pour diminuer le commerce bilat & eacute;ral & agrave; l'& eacute;chelon sectoriel, mais que les effets varient consid & eacute;rablement entre les secteurs et entre les sanctions commerciales totales et partielles.

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Economics
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