Identifying the Effects of Sanctions on the Iranian Economy Using Newspaper Coverage

Dario Laudati and Mohammad Pesaran

No 9217, CESifo Working Paper Series from CESifo

Abstract: This paper considers how sanctions affected the Iranian economy using a novel measure of sanctions intensity based on daily newspaper coverage. It finds sanctions to have significant effects on exchange rates, inflation, and output growth, with the Iranian rial over-reacting to sanctions, followed up with a rise in inflation and a fall in output. In absence of sanctions, Iran’s average annual growth could have been around 4 - 5 per cent, as compared to the 3 per cent realized. Sanctions are also found to have adverse effects on employment, labor force participation, secondary and high-school education, with such effects amplified for females.

Keywords: newspaper coverage; identification of direct and indirect effects of sanctions; Iran output growth; exchange rate depreciation and inflation; labor force participation and employment; secondary education; and gender bias (search for similar items in EconPapers)
JEL-codes: E31 E65 F43 F51 F53 O11 O19 O53 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ara, nep-isf and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Identifying the effects of sanctions on the Iranian economy using newspaper coverage (2023)
Working Paper: Identifying the Effects of Sanctions on the Iranian Economy using Newspaper Coverage (2021)
Working Paper: Identifying the Effects of Sanctions on the Iranian Economy using Newspaper Coverage (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9217

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