Quantifying the Impact of Economic Sanctions on International Trade in the Energy and Mining Sectors

Mario Larch, Serge Shikher, Constantinos Syropoulos () and Yoto Yotov

No 2021-9, School of Economics Working Paper Series from LeBow College of Business, Drexel University

Abstract: Capitalizing on the latest developments in the gravity literature, we utilize two new datasets on sanctions and trade to study the impact of economic sanctions on international trade in the mining sector, which includes oil and natural gas. We demonstrate that the gravity equation is well suited to model bilateral trade in mining and find that sanctions have been effective in impeding mining trade. Our analysis reveals that complete trade sanctions have reduced bilateral mining trade by about 44 percent on average. We also document the presence of significant heterogeneity in the effects of sanctions on mining trade across mining industries and across sanction episodes/cases, depending on the sanctioning and sanctioned countries, the type of sanctions used, and the direction of trade flows. We take a close look at the impact of recent sanctions on Iran and Russia.

Keywords: Structural Gravity; Sanctions; Mining; Oil; Trade Effects (search for similar items in EconPapers)
JEL-codes: F13 F14 F51 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2021-01-31
New Economics Papers: this item is included in nep-ara, nep-cis, nep-ene and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://drive.google.com/file/d/1UEbQp51WdlqbXg58w ... gbt/view?usp=sharing Full text (application/pdf)

Related works:
Journal Article: Quantifying the impact of economic sanctions on international trade in the energy and mining sectors (2022)
Working Paper: Quantifying the Impact of Economic Sanctions on International Trade in the Energy and Mining Sectors (2021)
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:ris:drxlwp:2021_009

Access Statistics for this paper

More papers in School of Economics Working Paper Series from LeBow College of Business, Drexel University Contact information at EDIRC.
Bibliographic data for series maintained by Richard C. Barnett ().