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Sanctions and the shadow economy: empirical evidence from Iranian provinces

Mohammad Reza Farzanegan () and Bernd Hayo ()

Applied Economics Letters, 2019, vol. 26, issue 6, 501-505

Abstract: Using Iranian province level data from 2001 to 2013, this study finds that the international sanctions of 2012/2013 had a significantly stronger negative impact on the growth rate of the shadow economy than they did on the official GDP growth rate. Thus, the international sanctions on Iran have damaged the informal economy even more than the formal economy.

Date: 2019
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DOI: 10.1080/13504851.2018.1486981

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