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Technological sanctions, research capacity, and unintended consequences

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  • Lo, Chu-Ping

Abstract

This study examines the impact of technological sanctions on global competition, highlighting that their outcomes depend significantly on the research capacities of the targeted countries. Strong research capacities can enable these countries to foster the emergence of high-productivity firms in response to sanctions, which may instead act as a catalyst to boost the sanctioned country’s aggregate productivity. As a result, technological sanctions might unexpectedly narrow the productivity gaps between the sanctioning and sanctioned countries. Conversely, while countries with robust research capacities demonstrate greater resilience to sanctions, those lacking such capacities are likely to experience widened productivity gaps following sanctions.

Suggested Citation

  • Lo, Chu-Ping, 2025. "Technological sanctions, research capacity, and unintended consequences," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025001054
    DOI: 10.1016/j.iref.2025.103942
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy

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