Technological sanctions, research capacity, and unintended consequences

Chu-Ping Lo

International Review of Economics & Finance, 2025, vol. 98, issue C

Abstract: This study examines the impact of technological sanctions on global competition, highlighting that their outcomes depend significantly on the research capacities of the targeted countries. Strong research capacities can enable these countries to foster the emergence of high-productivity firms in response to sanctions, which may instead act as a catalyst to boost the sanctioned country’s aggregate productivity. As a result, technological sanctions might unexpectedly narrow the productivity gaps between the sanctioning and sanctioned countries. Conversely, while countries with robust research capacities demonstrate greater resilience to sanctions, those lacking such capacities are likely to experience widened productivity gaps following sanctions.

Keywords: Technology sanction; Technology diffusion; International trade (search for similar items in EconPapers)
JEL-codes: F10 F51 F68 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025001054

DOI: 10.1016/j.iref.2025.103942

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