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Did the Qatar blockade work? Evidence from trade and consumer welfare three years after the blockade

Author

Listed:
  • Hanan Al-Mal

    (Doha Institute for Graduate Studies, Doha, Qatar)

  • Ayhab F. Saad

    (Doha Institute for Graduate Studies, Doha, Qatar)

Abstract

This article examines the effects of the embargo (blockade) imposed on Qatar in June 2017 by four countries: Saudi Arabia, the United Arab Emirates, Egypt, and Bahrain. Using highly disaggregated product-destination quarterly trade datasets provided by the Qatar General Authority of Customs, we find a significant decline in Qatar’s aggregate imports and consumer welfare (with an increase in the prices of imported goods) in the short run, but not thereafter. Political relations with non-besieging countries seem to be associated with Qatar’s bilateral trade after the blockade, particularly in the first quarter. Shortly after the blockade, countries opposing the blockade experienced a sizable growth in exports to Qatar. In the medium to long run, Qatar succeeded in mitigating the impact of the blockade by diversifying its import origins and adopting new reforms to stabilize the economy and enhance the country’s food security and self-sufficiency.donors explore alternative solutions to effectively deliver and distribute HA in fragile states.

Suggested Citation

  • Hanan Al-Mal & Ayhab F. Saad, 2021. "Did the Qatar blockade work? Evidence from trade and consumer welfare three years after the blockade," Economics of Peace and Security Journal, EPS Publishing, vol. 16(1), pages 66-73, April.
    • Handle: RePEc:epc:journl:v:16:y:2021:i:1:p:66-73
    DOI: 10.15355/epsj.16.1.66
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    More about this item

    Keywords

    Qatar; blockade; Trade; Political influence; Consumer welfare;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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