WP 544 Early phase success and long run failure of economic sanctions. With an application to Iran / by Sajjad Faraji Dizaji and P. A.G. van Bergeijk.
ISS Working Paper by Sajjad Faraji Dizaji and Peter A.G. van Bergeijk
Authors' abstract
We develop a model of the dynamics of economic sanctions in conjunction with the response of the sanction target. We apply this model to the case of the EU and US boycott of Iranian oil. Our VAR model finds significant impacts of sanctions both on key economic variables and on the political system. These effects, however, are limited in time and occur in the first two to four years of the sanction episode only because adjustment of economic structures mitigates the economic and political impact of the sanctions.
Keywords
Vector autoregressive model, sanctions, Iran
About the authors
| Sajjad Faraji Dizaji is a PhD candidate in economics at Tarbiat Modares University, Tehran, Iran. He has taught a variety of economic courses for BA and MA students in some Iranian universities during the last years. His research interests are: Mathematical Economics, Development Economics, International Economics, Game Theory, Public Economics, Econometrics, Financial Economics, and Resource and Environmental Economics. |
| Peter A.G. van Bergeijk is Professor of International Economics & Macroeconomics, at the International Institute of Social Studies (ISS). Over the last year he completed books on the gravity model in international trade (coedited with Steven Brakman for Cambridge University Press), the world trade collapse (for Edward Elgar) and the financial crisis in relation to development (co-edited with Rolph van der Hoeven and Arjan de Haan for Edward Elgar). Presently he is working (as a guest editor) on a special issue for The Journal of International Trade and Economic Development on heterogeneity and development.Et. |
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Publication date: Thursday, 07 June 2012
