IDEAS home Printed from
   My bibliography  Save this article

A Study of Unilateral and Multilateral Sanctions Effectiveness on Iran's Non-Oil Foreign Trade Products


  • Kazerooni, Alireza

    () (University of Tabriz)

  • Ghorbani, Adel

    () (University of Tabriz)

  • Saghafi, Reza

    () (University of Tabriz)


In this study, the impact of economic sanctions on Iranian trade flow with the 73 main trading partners has been estimated over the period 2001 to 2012 by using a modified gravity model as well as two stages GMM dynamic panel data technique. To investigate the impact of economic sanctions on Iran's foreign trade, the sanctions effect has been examined on Iranian trade with all trading partners. The results have shown that US unilateral sanctions on Iran's foreign trade has no significant effect. But multilateral sanctions have had a significant negative effect on Iran's foreign trade. Impact of sanctions on Iran's trade with third party countries is examined in a separate model. In this section, the ability of a country to escape and evade sanctions (a sanction busting hypothesis) has been tested. The results of estimations indicate that the unilateral sanctions do not have a significant effect on the volume of Iranian trade with third countries. In other words, Iran has been able to limit and control the United States unilateral sanctions by Trade expansion with third countries. But multilateral sanctions have had a significant negative impact on the Iran's trade with these countries. This result confirms the hypothesis Unilateral sanction-busting for the Iran's economy.

Suggested Citation

  • Kazerooni, Alireza & Ghorbani, Adel & Saghafi, Reza, 2015. "A Study of Unilateral and Multilateral Sanctions Effectiveness on Iran's Non-Oil Foreign Trade Products," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 2(1), pages 83-98, April.
  • Handle: RePEc:ris:qjatoe:0005

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    More about this item


    Unilateral and Multilateral Sanctions; Irans Foreign Trade; Gravity Model; Dynamic Panel Data.;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0005. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sakineh Sojoodi). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.