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Early phase success and long run failure of economic sanctions. With an application to Iran

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  • Dizaji, S.F.
  • van Bergeijk, P.A.G.

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.

Suggested Citation

  • Dizaji, S.F. & van Bergeijk, P.A.G., 2012. "Early phase success and long run failure of economic sanctions. With an application to Iran," ISS Working Papers - General Series 544, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    • Handle: RePEc:ems:euriss:32491
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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. Shahadat Hossain Siddiquee, M. & van Bergeijk, P.A.G., 2012. "Reconsidering economic sanctions reconsidered. A detailed analysis of the Peterson Institute sanction database," ISS Working Papers - General Series 549, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    3. Sajjad Faraji Dizaji & Peter A G van Bergeijk, 2013. "Potential early phase success and ultimate failure of economic sanctions," Journal of Peace Research, Peace Research Institute Oslo, vol. 50(6), pages 721-736, November.

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