Costs of Economic Sanctions to the Sender

Farmer, Richard D.

doi:10.1111/1467-9701.00264

Cited by 28 publications

(13 citation statements)

References 13 publications

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“…In particular, trade sanctions may affect trade by altering an important 11/36 element of the nations' comparative advantage (Farmer, 2000). Imposing restrictions or bans on imported goods and services can also reduce the base for future economic growth (Lucas & Griswold, 2003).…”

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confidence: 99%

State-owned MNCs and host country expropriation risk: The role of home state soft power and economic gunboat diplomacy

2014

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Expropriation risk has a binding effect on foreign direct investment (FDI). However, state-owned multinational corporation (MNCs) may counter the monopoly power of the host state by leveraging the political influence of their home government. The magnitude of this counter force, we argue, may vary, depending on the strength of political relations between the home and host state, and the level of economic dependence of the host country on the home market. We find supporting evidence of our hypotheses using Chinese firm level FDI information between 2003 and 2010.

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confidence: 99%

State-owned MNCs and host country expropriation risk: The role of home state soft power and economic gunboat diplomacy

2014

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“…2 2 Also, see Farmer (2000) for a more detailed analysis of the various costs to the sender nation associated with the imposition of sanctions. …”

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Sanctions, Signals, and Militarized Conflict

Lektzian

Sprecher

2007

American J Political Sci

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Economic sanctions are frequently used as a tool of foreign policy, described by some as falling between diplomacy and military force. An important question regarding the use of sanctions is whether they can function as an alternative to military force by demonstrating the sender's resolve and making military force unnecessary, or if their use tends to result in an increased probability that military force will be used. Based on a theory of sanctions as costly signals, the authors develop and test hypotheses regarding the relationship between sanctions and military force. The results show that after a sanction occurs, there is a significantly increased probability of a use of military force. Democracies, because of their propensity to tie their hands with audience costs, while at the same time facing domestic pressure to devise sanctions to be costless to the sender, are highly likely to be involved in a militarized dispute after using sanctions.

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“…The literature on sanctions is concerned with assessment of effectiveness of unilateral and multilateral sanctions as well as their costs to the target and sender countries. Examples are the work of Hufbauer, Schott and Elliot (1990) and Richard D. Farmer (2000). Some researchers have contended that sanctions 408 AKBAR E. TORBAT © Blackwell Publishing Ltd 2005 policies are generally ineffective in the post-Cold War era.…”

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confidence: 99%

Impacts of the US Trade and Financial Sanctions on Iran

Torbat

2005

World Economy

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This article presents a case study of the effectiveness of the US unilateral trade and financial sanctions on Iran. To assess the trade sanctions’ effect, the US–Iran historical trade data are examined, and the economic cost of trade sanctions is measured by applying the concept of welfare loss. The financial sanctions’ impacts are evaluated by assessing the extra charges Iran has paid on its foreign debt obligations and for financing its oil development projects. At the end, the efficacy of the US sanctions policy towards Iran is evaluated. It is found that the financial sanctions have had a more powerful impact than the trade sanctions. The analysis also shows that the unilateral import sanctions on the fungible crude oil have been ineffective. It is concluded that, overall, the sanctions’ economic effect has been significant, while its political effect has been minimal. This article suggests that targeting the sanctions towards the ruling clergy can improve their effectiveness while lessening their side effects on the Iranian population. Precise smart sanctions to force the ruling clerics to step down will calm down Islamic fundamentalisms throughout the region and will contribute to peace and better relations with the West.

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Costs of Economic Sanctions to the Sender

Cited by 28 publications

References 13 publications

State-owned MNCs and host country expropriation risk: The role of home state soft power and economic gunboat diplomacy

State-owned MNCs and host country expropriation risk: The role of home state soft power and economic gunboat diplomacy

Sanctions, Signals, and Militarized Conflict

Impacts of the US Trade and Financial Sanctions on Iran

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