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The Theory and Practice of International Economic Sanctions

Author

Listed:
  • Knobel, A.

    (International Trade Center at the Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia
    Institute of International Economics and Finance at Russian Foreign Trade Academy, Moscow, Russia)

  • Proka, K.

    (International Trade Center at the Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia)

  • Bagdasaryan, K.

    (International Trade Center at the Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia)

Abstract

We consider theoretical and practical aspects of economic sanctions for assessment and classification of restrictive measures. We also carried out an extensive analysis of foreign and domestic literature about international experience and forms of countering sanctions by various political system. A theoretical analysis of international trade and political sanctions revealed a lack of scientific consensus on a number of fundamental issues, such as the motives underlying the introduction of various restrictions, their effectiveness, factors of their effectiveness, economic consequences etc. Despite the lack of clear and convincing arguments in favor of efficiency of such methods, states continue to actively use them in their practice. A practical analysis of international trade and political sanctions in different historical periods revealed that the most effective policy to counter all kinds of restrictions is not to introduce symmetrical measures and close markets for goods, services, labor, capital, but to conduct a proactive policy to increase market openness and develop investment cooperation. One vivid example of the validity of this statement is the experience of China. As a result of the study, recommendations are proposed for conducting economic policy in the context of the applied restrictive measures in relation to Russia.

Suggested Citation

  • Knobel, A. & Proka, K. & Bagdasaryan, K., 2019. "The Theory and Practice of International Economic Sanctions," Journal of the New Economic Association, New Economic Association, vol. 43(3), pages 152-162.
    • Handle: RePEc:nea:journl:y:2019:i:43:p:152-162
    DOI: 10.31737/2221-2264-2019-43-3-7
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    References listed on IDEAS

    as
    1. Peter Wallensteen, 1968. "Characteristics of Economic Sanctions," Journal of Peace Research, Peace Research Institute Oslo, vol. 5(3), pages 248-267, September.
    2. Knobel, Alexander (Кнобель Александр) & Bagdasaryan, Kniaz (Багдасарян, Княз) & Loshchenkova, Anna (Лощенкова, Анна) & Proka, Ksenia (Прока, Ксения), 2019. "Sanctions: seriously and for a long time [Санкции: Всерьез И Надолго]," Published Papers 021901, Russian Presidential Academy of National Economy and Public Administration.
    3. Kaempfer, William H. & Lowenberg, Anton D., 2007. "The Political Economy of Economic Sanctions," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 2, chapter 27, pages 867-911, Elsevier.
    4. Gary Clyde Hufbauer & Jeffrey J. Schott & Kimberly Ann Elliott, 2009. "Economic Sanctions Reconsidered, 3rd Edition (paper)," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4129.
    5. Pakhomov Alexander & Bagdasaryan Knyaz, 2018. "The Results of Global Goods and Services Trade Development in 2017," Working Papers wpaper-2018-329, Gaidar Institute for Economic Policy, revised 2018.
    6. Fredrik Hoffmann, 1967. "The Functions of Economic Sanctions: a Comparative Analysis," Journal of Peace Research, Peace Research Institute Oslo, vol. 4(2), pages 140-159, June.
    7. Gary Clyde Hufbauer & Jeffrey J. Schott & Kimberly Ann Elliott, 2007. "Economic Sanctions Reconsidered, 3rd edition (hardcover)," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4075, January.
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    More about this item

    Keywords

    economic sanctions; trade political constraints; capital outflow; resources redistribution; investment reduction;
    All these keywords.

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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