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Oil sanctions and their transmission channels in the Iranian economy: A DSGE model

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  • Nakhli, Seyyed Reza
  • Rafat, Monireh
  • Dastjerdi, Rasul Bakhshi
  • Rafei, Meysam

Abstract

The political history of Iran in the last 67 years shows that Iran has always been the target of sanctions especially oil-related sanctions imposed by other countries and international organizations. Oil sanctions in the form of export, extraction technology, and foreign financing are the most important sanctions that have had significant effects on Iran's macroeconomic variables. Therefore, in this paper an attempt has been made to analyze the impacts of the abovementioned sanctions on the Iranian economy in the form of a Dynamic Stochastic General Equilibrium Model with the New Keynesian approach.

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  • Nakhli, Seyyed Reza & Rafat, Monireh & Dastjerdi, Rasul Bakhshi & Rafei, Meysam, 2021. "Oil sanctions and their transmission channels in the Iranian economy: A DSGE model," Resources Policy, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:jrpoli:v:70:y:2021:i:c:s0301420720309910
    DOI: 10.1016/j.resourpol.2020.101963
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    Cited by:

    1. Xiaoxiao Hu & Ling He & Qi Cui, 2021. "How Do International Conflicts Impact China’s Energy Security and Economic Growth? A Case Study of the US Economic Sanctions on Iran," Sustainability, MDPI, vol. 13(12), pages 1-21, June.
    2. Chanamart Intapan & Chukiat Chaiboonsri & Pairach Piboonrungroj, 2021. "Forecasting for the Optimal Numbers of COVID-19 Infection to Maintain Economic Circular Flows of Thailand," Economies, MDPI, vol. 9(4), pages 1-22, October.
    3. Chan, Ying Tung & Qiao, Hui, 2023. "Volatility spillover between oil and stock prices: Structural connectedness based on a multi-sector DSGE model approach with Bayesian estimation," International Review of Economics & Finance, Elsevier, vol. 87(C), pages 265-286.
    4. Yugang He & Moongi Lee, 2022. "Macroeconomic Effects of Energy Price: New Insight from Korea?," Mathematics, MDPI, vol. 10(15), pages 1-14, July.

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    More about this item

    Keywords

    Oil export sanctions; Extraction technology sanction; Foreign financing sanctions; Dynamic stochastic general equilibrium model; Iran;
    All these keywords.

    JEL classification:

    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

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