Quantifying the partial and general equilibrium effects of sanctions on Russia

Lisandra Flach, Inga Heiland, Mario Larch, Marina Steininger and Feodora Teti

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper evaluates the effects of sanctions on Russia between 2014 and 2019 and the resulting countersanctions. We estimate their impact on trade in a gravity framework, allowing for treatment heterogeneity among pairs and sectors, and use the estimated elasticities in a general equilibrium analysis. We find that the sanctions decreased trade with Russia in key sectors, translating to a loss in real income in Russia by 0.3%. Full decoupling of the EU and its allies from Russia would increase this effect to over 4%. Our results emphasize the role of deep sanctions as a foreign policy instrument and international cooperation.

Keywords: general equilibrium; sanctions; structural gravity; treatment heterogeneity (search for similar items in EconPapers)
JEL-codes: F1 F13 F14 F5 F51 H5 N4 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-cis, nep-int and nep-tra
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Citations: View citations in EconPapers (1)

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https://www.econstor.eu/bitstream/10419/302103/1/Q ... ctions-on-Russia.pdf (application/pdf)

Related works:
Journal Article: Quantifying the partial and general equilibrium effects of sanctions on Russia (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:302103

DOI: 10.1111/roie.12707

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