Not-so-innocent bystanders: Trade with neighbors of sanctioned countries

Daria Suprunenko ()
Additional contact information
Daria Suprunenko: Osnabrueck University

No 123, IEER Working Papers from Institute of Empirical Economic Research, Osnabrueck University

Abstract: Geographic neighbors of sanctioned countries (targets) may suffer from indirect effects of sanctions or benefit by helping targets circumvent restrictions. I study the effects of sanctions on trade among neighbors and targets using data from BACI for 2002–2022 and separately accounting for export of sensitive goods: arms, dual use goods and machinery. I find that export of dual use goods (in value) and machinery (in value and weight) from benevolent neighbors to targets increases when sanctions are in place. Additionally, I show that the weight of arms exported by neighbors to Iran, as well as value of dual use goods and weight of machinery exported to Russia were significantly higher with sanctions in place suggesting that their neighbors were not innocent bystanders.

Keywords: Trade sanctions; extraterritorial effects; trade (search for similar items in EconPapers)
JEL-codes: F13 F51 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2024-09-05
New Economics Papers: this item is included in nep-cis and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://web.fb9.uni-osnabrueck.de/repec/iee/wpaper/17258763_WP_123.pdf (application/pdf)

Related works:
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:iee:wpaper:wp0123

Access Statistics for this paper

More papers in IEER Working Papers from Institute of Empirical Economic Research, Osnabrueck University Rolandstrasse 8, 49069 Osnabrueck. Contact information at EDIRC.
Bibliographic data for series maintained by Karin Wessler-Rensmann ().