The Effects of Heterogeneous Sanctions on Exporting Firms —Evidence from Denmark

Ina C. Jäkel, Søren Østervig and Erdal Yalcin

No 10086, CESifo Working Paper Series from CESifo

Abstract: Sanctions encompass a wide set of policy instruments restricting cross-border economic activities. In this paper, we study how different types of sanctions affect the export behaviour of firms to the targeted countries. We combine Danish register data, including information on firm-destination-specific exports, with information on sanctions imposed by Denmark from the Global Sanctions Database. Our data allow us to study firms’ export behaviour in 62 sanctioned countries, amounting to a total of 453 country-years with sanctions over the period 2000-2015. Methodologically, we apply a two-stage estimation strategy to properly account for multilateral resistance terms. We find that, on average, sanctions lead to a significant reduction in firms’ destination-specific exports and a significant increase in firms’ probability to exit the destination. Next, we study heterogeneity in the effects of sanctions across (i) sanction types and sanction packages, (ii) the objectives of sanctions, and (iii) countries subject to sanctions. Results confirm that the effects of sanctions on firms’ export behaviour vary considerably across these three dimensions.

Keywords: sanctions; firm exports; trade margins (search for similar items in EconPapers)
JEL-codes: F13 F14 F51 F52 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-eur and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp10086.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Unavailable

Related works:
Journal Article: The effects of heterogeneous sanctions on exporting firms: Evidence from Denmark (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10086

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().