Do economic sanctions affect protectionism? Evidence from agricultural support

Abstract

The objective of this paper is to examine whether economic sanctions contribute to influencing the target countries’ protectionist policies in the agricultural sector. Using pooled mean group estimations in a dynamic heterogeneous panel setting, we find robust empirical evidence that, in the long‐run, economic sanctions decrease agricultural protection in the target counties, and this effect is mitigated by the wealth of the target's economy. However, the relationship is insignificant in the short run. Furthermore, our results also suggest that the impact of sanctions on agricultural protection (a) increases with the severity of economic sanctions, (b) is greater for multilateral sanctions than unilateral sanctions, and (c) is more severe on agricultural protection when sanctions span a longer duration.

The impact of international sanctions on innovation of target countries

“…Furthermore, the continuous advance of globalization provides more opportunities and means for international sanctions (Cox & Drury, 2006). Many scholars such as Hovi et al (2005), Bapat and Morgan (2009), and Nivesjö (2013) have explored whether international sanctions actually work, while other researchers have focused on the negative impacts of international sanctions on the fields of economics, politics, energy, and social welfare of target countries (Afesorgbor & Mahadevan, 2016; Biglaiser & Lektzian, 2020; Fischhendler et al, 2017; Hu et al,2021; Jafarey & Lahiri, 2002; Lv & Xu, 2019; Neuenkirch & Neumeier, 2015; Peksen & Son, 2015; Peksen, 2016; Wang et al, 2022; Wen et al, 2021). Therefore, it is theoretically possible to link international sanctions to innovation as external international sanctions limit international exchanges, reduce trade flows, and cut technology imports from the target countries (Afesorgbor, 2019; Kim, 2013; Yang et al, 2004).…”