Financial risks and economic costs of trade sanctions

Chengzhi Qiao

Finance Research Letters, 2024, vol. 69, issue PA

Abstract: This paper selects the panel data of 31 provinces, autonomous regions, and municipalities in China from 2012 to 2022 as a sample. It empirically analyzes the relationship between financial risk and economic costs in the context of trade sanctions and the mediating effect of technological innovation. It is found that the financial risk of trade sanctions significantly increases economic costs and also indirectly exacerbates these costs by affecting technological innovation. This study reveals the far-reaching effects of financial risks of trade sanctions on the economy, emphasizes the critical role of technological innovation in mitigating sanctions shocks, and provides new perspectives and references for policymakers.

Keywords: Trade sanctions; Financial risk; Economic costs (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pa:s1544612324011425

DOI: 10.1016/j.frl.2024.106113

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