SMU SOE Online Seminar (Oct 21, 2022, 10am-11.30am): Do Sanctions Affect Growth?

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TOPIC:

DO SANCTIONS AFFECT GROWTH?

ABSTRACT Direct measures of the economic impact of sanctions are contaminated by the endogeneity that arises when other events in target countries (e.g.,civil or interstate conflicts, political independence, etc.) instigate the imposition of sanctions. To address this issue, we propose a novel instrument, sender’s aggressiveness, captured by the number of sanctions imposed in a given year. After establishing the validity of this instrument, we quantify the impact of sanctions on growth in sanctioned states and show that, on average, an additional sanction decreases contemporaneous real GDP per capita in target states by 0.39 percent. We also substantiate the presence of a significant (in magnitude) downward bias in the corresponding OLS estimates and demonstrate that the effects of sanctions on growth vary widely depending on the types of sanctions considered, their purported objectives, measures of their success, and the duration of their effects. Keywords: Real GDP per capita growth, trade sanctions, smart sanctions, long-run effects JEL Codes: F43, F51, F63 Click here to view the paper. Click here to view the CV.		This seminar will be held virtually via Zoom. A confirmation email with the Zoom details will be sent to the registered email by 20 October 2022.
		PRESENTER Ohyun Kwon Drexel University
		RESEARCH FIELDS International Trade Economic Sanctions Exchange Rate Policy Globalization Environment
		DATE: 21 October 2022 (Friday)
		TIME: 10.00am - 11.30am

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