Quantifying the impact of economic sanctions on international trade in the energy and mining sectors
We study the impact of economic sanctions on international trade in the mining sector. We demonstrate that the gravity equation is well‐suited to model bilateral trade costs in mining and find that sanctions have been effective in impeding mining trade. Complete trade sanctions have reduced mining t...
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Published in | Economic inquiry Vol. 60; no. 3; pp. 1038 - 1063 |
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Main Authors | , , , |
Format | Journal Article |
Language | English |
Published |
Huntington Beach
Western Economic Association
01.07.2022
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Abstract | We study the impact of economic sanctions on international trade in the mining sector. We demonstrate that the gravity equation is well‐suited to model bilateral trade costs in mining and find that sanctions have been effective in impeding mining trade. Complete trade sanctions have reduced mining trade by about 44% on average. We also document significant heterogeneity in the sanctions effects on mining trade across industries, sanction episodes/cases, depending on the sanctioning and sanctioned countries, the type of sanctions, and the direction of trade. We take a close look at the impact of recent sanctions on Iran and Russia. |
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AbstractList | We study the impact of economic sanctions on international trade in the mining sector. We demonstrate that the gravity equation is well‐suited to model bilateral trade costs in mining and find that sanctions have been effective in impeding mining trade. Complete trade sanctions have reduced mining trade by about 44% on average. We also document significant heterogeneity in the sanctions effects on mining trade across industries, sanction episodes/cases, depending on the sanctioning and sanctioned countries, the type of sanctions, and the direction of trade. We take a close look at the impact of recent sanctions on Iran and Russia. |
Author | Larch, Mario Shikher, Serge Syropoulos, Constantinos Yotov, Yoto V. |
Author_xml | – sequence: 1 givenname: Mario orcidid: 0000-0001-9355-2004 surname: Larch fullname: Larch, Mario organization: GEP – sequence: 2 givenname: Serge surname: Shikher fullname: Shikher, Serge organization: United States International Trade Commission (USITC) – sequence: 3 givenname: Constantinos surname: Syropoulos fullname: Syropoulos, Constantinos organization: Drexel University – sequence: 4 givenname: Yoto V. surname: Yotov fullname: Yotov, Yoto V. email: yotov@drexel.edu organization: Drexel University |
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Notes | Maggie Chen The views expressed in this paper are strictly those of the authors and do not represent the opinions of the US International Trade Commission or of any of its Commissioners. Managing Editor |
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Title | Quantifying the impact of economic sanctions on international trade in the energy and mining sectors |
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