International economic sanctions are a recurring feature of political interactions. This paper provides, through a gravity model approach, an estimation of the impact of sanctions on international trade. The study reports panel estimates between the US and 49 target countries over the period 1960- 2000, inclusive. The results show that extensive sanctions have a large negative impact on bilateral trade, while this is not the case for limited and moderate sanctions. A second estimation focuses on the impact of unilateral US sanctions on bilateral trade between target countries and the other G-7 countries. The results show that unilateral extensive sanctions have also a large negative impact, while limited ones induce a slight positive effect on other G-7 countries trade. In the first case the hypothesis of negative ¿network effects¿ is confirmed, while in the latter the sanctions-busting argument should be defended.

Caruso, R., The Impact of International Economic Sanctions on Trade: empirical evidence over the period 1960-2000, <<RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI>>, 2005; (1): 41-66 [http://hdl.handle.net/10807/32586]

The Impact of International Economic Sanctions on Trade: empirical evidence over the period 1960-2000

Caruso, Raul
2005

Abstract

International economic sanctions are a recurring feature of political interactions. This paper provides, through a gravity model approach, an estimation of the impact of sanctions on international trade. The study reports panel estimates between the US and 49 target countries over the period 1960- 2000, inclusive. The results show that extensive sanctions have a large negative impact on bilateral trade, while this is not the case for limited and moderate sanctions. A second estimation focuses on the impact of unilateral US sanctions on bilateral trade between target countries and the other G-7 countries. The results show that unilateral extensive sanctions have also a large negative impact, while limited ones induce a slight positive effect on other G-7 countries trade. In the first case the hypothesis of negative ¿network effects¿ is confirmed, while in the latter the sanctions-busting argument should be defended.
Inglese
Caruso, R., The Impact of International Economic Sanctions on Trade: empirical evidence over the period 1960-2000, <<RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI>>, 2005; (1): 41-66 [http://hdl.handle.net/10807/32586]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/32586
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