Economic sanctions and trade flows in the neighbourhood

Vincenzo Bove, Jessica Di Salvatore and Roberto Nisticò ()

No wp-2021-184, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We investigate the effect of economic sanctions on trade flows in countries sharing a border with the sanctioned state. On the one hand, trade models suggest that trade flows should decrease as sanctions disrupt trading routes and economic ties with suppliers and customers. On the other hand, countries can circumvent trade restrictions by clandestinely exchanging goods with sanctioned countries across the border and trading on its behalf. If this is the case, we should expect an increase in their imports and/or exports.

Keywords: Sanctions; Trade; Synthetic control method (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cwa and nep-int
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Economic Sanctions and Trade Flows in the Neighborhood (2023)
Working Paper: Economic Sanctions and Trade Flows in the Neighbourhood (2023)
Working Paper: Economic Sanctions and Trade Flows in The Neighbourhood (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:wp-2021-184

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