The Impact of International Economic Sanctions on Trade Empirical Evidence over the Period 1960-2000

Raul Caruso ()

Rivista Internazionale di Scienze Sociali, 2005, vol. 113, issue 1, 41-66

Abstract: International economic sanctions are a recurring feature of political interactions. This paper provides, through a gravity model approach, an estimation of the impact of sanctions on international trade. The study reports panel estimates between the US and 49 target countries over the period 1960- 2000, inclusive. The results show that extensive sanctions have a large negative impact on bilateral trade, while this is not the case for limited and moderate sanctions. A second estimation focuses on the impact of unilateral US sanctions on bilateral trade between target countries and the other G-7 countries. The results show that unilateral extensive sanctions have also a large negative impact, while limited ones induce a slight positive effect on other G-7 countries trade. In the first case the hypothesis of negative ‘network effects’ is confirmed, while in the latter the sanctions-busting argument should be defended.

Keywords: International negative sanctions; international trade; gravity model (search for similar items in EconPapers)
JEL-codes: C23 F13 H89 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:vep:journl:y:2005:v:113:i:1:p:41-66

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