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Sanctions and the Shadow Economy: Empirical Evidence from Iranian Provinces

Mohammad Reza Farzanegan () and Bernd Hayo ()

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: Using Iranian-province-level data from 2001–2013, 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.

Keywords: shadow economy; sanctions; Iran (search for similar items in EconPapers)
JEL-codes: E26 F51 O17 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2018
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-iue and nep-mac
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Journal Article: Sanctions and the shadow economy: empirical evidence from Iranian provinces (2019) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201807

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