What is it about?
Employing the event study approach based on a novel dataset, this paper provides evidence on the effects of sanctions on economic growth for a large sample of countries during 1960–2022. We cannot provide firm evidence on the alleged adverse effects of sanctions on output growth. If any, the effects of sanctions are short-lived and heterogenous with respect to the type of sanctions and senders.
Featured Image
Why is it important?
In the paper we utilize a novel data set providing comprehensive coverage of economic sanctions differentiated by senders, types, and objectives; we provide an extensive investigation of heterogeneity in the effects of sanctions by differentiating between major sanction senders (multilateral, US, and EU sanctions), across various categories of sanctions (trade, financial, travel, and other sanctions) as well as among advanced and developing countries; finally, we deal with the endogeneity of sanctions by employing several staggered difference-in-differences estimators.
Perspectives
The paper shows that the effectiveness of economic sanctions is a complex issue, suggesting that there is no one-size-fits-all type of sanctions. Also, in today's integrated world, there are more opportunities for evasion of sanctions.
Goran Petrevski
Saints Cyril and Methodius University in Skopje
Read the Original
This page is a summary of: Economic sanctions and output growth: Empirical evidence, International Economics and Economic Policy, July 2026, Springer Science + Business Media,
DOI: 10.1007/s10368-026-00782-z.
You can read the full text:
Contributors
The following have contributed to this page
