Who Is to Suffer? Quantifying the Impact of Sanctions on German Firms
Holger Görg (),
Anna Jacobs () and
Saskia Meuchelböck
Additional contact information
Holger Görg: Kiel Institute for the World Economy
Anna Jacobs: University of Bielefeld
No 16146, IZA Discussion Papers from Institute of Labor Economics (IZA)
Abstract:
In this paper, we use a novel firm level dataset for Germany to investigate the effect of sanctions on export behaviour and performance of German firms. More specifically, we study the sanctions imposed by the EU against Russia in 2014 in response to the annexation of Crimea and Russia's countermeasures. We find a substantial negative effect on both the extensive and intensive margin of German exports. While the negative effects are strongest for firms exporting products subject to trade restrictions, we provide further evidence on the indirect effects of sanctions. Analysing the impact on broader measures of firm performance, we document that the cost of sanctions is heterogeneous across firms but overall modest. Our results reveal that the negative impact of the shock was concentrated primarily among a small number of firms that were highly dependent on Russia as an export market and those directly affected by the sanctions.
Keywords: sanctions; foreign policy; trade; firm behaviour; Germany (search for similar items in EconPapers)
JEL-codes: F1 F14 F51 L25 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2023-05
New Economics Papers: this item is included in nep-bec, nep-cis, nep-int, nep-mfd, nep-sbm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:
Published - published in: Journal of Economic Behavior & Organization, 2024, 228, 106767
Downloads: (external link)
https://docs.iza.org/dp16146.pdf (application/pdf)
Related works:
Journal Article: Who is to suffer? Quantifying the impact of sanctions on German firms (2024) 
Working Paper: Who is to suffer? Quantifying the impact of sanctions on German firms (2024) 
Working Paper: Who is to suffer? Quantifying the impact of sanctions on German firms (2023) 
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:iza:izadps:dp16146
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().