Smart or Smash? The Effect of Financial Sanctions on Trade in Goods and Services

BesedeÅ¡, Tibor; Goldbach, Stefan; Nitsch, Volker

doi:10.2139/ssrn.4201918

Cited by 4 publications

(9 citation statements)

References 19 publications

(28 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Moreover, in contrast to many previous studies on the effects of sanctions, our estimates reflect the effect of sanctions on the average firm, rather than the effects on the average country pair. 28 Given that trade sanctions are almost always imposed in addition to financial sanctions, our PPML results are very similar to those in Besedeš et al (2022). Specifically, in their PPML specification, they find that financial sanctions alone had no significant effect on total German exports (aggregated across firms), but significantly reduced exports (by 26%) when combined with export restrictions.…”

Section: Discussionsupporting

confidence: 61%

“…An interesting complimentary perspective is offered in Haidar (2017), who studies the response of Iranian firms to international sanctions against Iran. 7 In their most recent work, instead, they consider trade responses to financial sanctions, exploiting country-product level trade data for Germany; see Besedeš et al (2022). Further studies exploiting firm-level data to study the effects of sanctions include Ahn and Ludema (2020).…”

Section: Acknowledgmentsmentioning

confidence: 99%

“…7 7 In their most recent work, instead, they consider trade responses to financial sanctions, exploiting country‐product level trade data for Germany; see Besedeš et al (2022). Further studies exploiting firm‐level data to study the effects of sanctions include Ahn and Ludema (2020).…”

mentioning

confidence: 99%

See 2 more Smart Citations

The effects of heterogeneous sanctions on exporting firms: Evidence from Denmark

Jäkel,

Østervig,

Yalcin

2023

Rev International Economics

View full text Add to dashboard Cite

Sanctions encompass a wide set of policy instruments restricting cross‐border economic activities. In this paper, we study how different types of sanctions affect the export behavior of firms to the targeted countries. We combine Danish register data, including information on firm‐destination‐specific exports, with information on sanctions imposed by Denmark from the Global Sanctions Database. Our data allow us to study firms' export behavior in 62 sanctioned countries, amounting to a total of 453 country‐years with sanctions over the period 2000–2015. Methodologically, we apply a two‐stage estimation strategy to properly account for multilateral resistance terms. We find that, on average, sanctions lead to a significant reduction in firms' destination‐specific exports and a significant increase in firms' probability to exit the destination. Next, we study heterogeneity in the effects of sanctions across (i) sanction types and sanction packages, (ii) the objectives of sanctions, and (iii) countries subject to sanctions. Results confirm that the effects of sanctions on firms' export behavior vary considerably across these three dimensions.

show abstract

Section: Discussionsupporting

confidence: 61%

Section: Acknowledgmentsmentioning

confidence: 99%

See 1 more Smart Citation

The effects of heterogeneous sanctions on exporting firms: Evidence from Denmark

Jäkel,

Østervig,

Yalcin

2023

Rev International Economics

View full text Add to dashboard Cite

show abstract

“…Here are two examples that highlight the need of new methods. First, as discussed earlier, an important dimension of the gravity-type analysis from Besedeš et al (2024) is that the time-dimension of the analysis is monthly. While the trade gravity literature has made a remarkable progress in terms of estimation methods, we are not aware of well-established methods aimed at estimating gravity regressions with high-frequency flows.…”

Section: Introductionmentioning

confidence: 99%

Analyzing the effects of economic sanctions: Recent theory, data, and quantification

Egger,

Syropoulos,

Yotov

2024

Rev International Economics

View full text Add to dashboard Cite

Inspired by the increased interest in economic sanctions and their consequences, this special issue contains a collection of studies by experts aiming to reflect the recent developments and trends in the literature on economic sanctions. The contributions contain theoretical research on the topic, data collection, and empirical work on the impact, effectiveness and success of sanctions. Moreover, the contributions come from economists and political scientists and are, therefore, interdisciplinary in nature. In this introduction, we highlight each paper in the volume by summarizing its salient features and by placing them in the broader context of the literature on economic sanctions. We also synthesize several takeaways and conclude by identifying questions we believe future research should shed further light on.

show abstract

“…Other authors have also studied alternative outcomes of interest; see, e.g.,Besedeš et al (2017) for the effect of (financial) sanctions on capital flows.4 Notably, these studies focus on firms in the sending countries. An interesting complimentary perspective is offered inHaidar (2017), who studies the response of Iranian firms to international sanctions against Iran.5 In their most recent work, instead, they consider trade responses to financial sanctions, exploiting countryproduct level trade data for Germany; seeBesedeš et al (2022). Further studies exploiting firm-level data to study the effects of sanctions includeAhn and Ludema (2020).…”

mentioning

confidence: 99%

The Effects of Heterogeneous Sanctions on Exporting Firms —Evidence from Denmark

2022

View full text Add to dashboard Cite

Smart or Smash? The Effect of Financial Sanctions on Trade in Goods and Services

Cited by 4 publications

References 19 publications

The effects of heterogeneous sanctions on exporting firms: Evidence from Denmark

The effects of heterogeneous sanctions on exporting firms: Evidence from Denmark

Analyzing the effects of economic sanctions: Recent theory, data, and quantification

The Effects of Heterogeneous Sanctions on Exporting Firms —Evidence from Denmark

Contact Info

Product

Resources

About