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On Target? The Incidence of Sanctions Across Listed Firms in Iran

Author

Listed:
  • Draca, Mirko

    (University of Warwick)

  • Garred, Jason

    (University of Ottawa)

  • Stickland, Leanne

    (National Audit Office, UK Government)

  • Warrinnier, Nele

    (Faculty of Economics and Business, KU Leuven)

Abstract

How successful are sanctions at targeting the economic interests of political elites in affected countries? We study the case of Iran, using information on the stock exchangelisted assets of two specific political entities with significant influence over the direction of Iran’s nuclear program. Our identification strategy focuses on the process of negotiations for sanctions removal, examining which interests benefit most from news about diplomatic progress. The results indicate the ‘bluntness’ of sanctions on Iran, but also provide evidence of their effectiveness in generating substantial economic incentives for elite policymakers to negotiate a deal for sanctions relief.

Suggested Citation

  • Draca, Mirko & Garred, Jason & Stickland, Leanne & Warrinnier, Nele, 2018. "On Target? The Incidence of Sanctions Across Listed Firms in Iran," CAGE Online Working Paper Series 372, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:372
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/372-2018_draca.pdf
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    References listed on IDEAS

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    Cited by:

    1. Thiemo Fetzer & Carlo Schwarz, 2021. "Tariffs and Politics: Evidence from Trump’s Trade Wars," The Economic Journal, Royal Economic Society, vol. 131(636), pages 1717-1741.
    2. Felbermayr, Gabriel & Kirilakha, Aleksandra & Syropoulos, Constantinos & Yalcin, Erdal & Yotov, Yoto V., 2020. "The global sanctions data base," European Economic Review, Elsevier, vol. 129(C).
    3. Ahn, Daniel P. & Ludema, Rodney D., 2020. "The sword and the shield: The economics of targeted sanctions," European Economic Review, Elsevier, vol. 130(C).
    4. Thiemo Fetzer & Carlo Schwarz, 2021. "Tariffs and Politics: Evidence from Trump’s Trade Wars," Economic Journal, Royal Economic Society, vol. 131(636), pages 1717-1741.
    5. Peeva, Aleksandra, 2019. "Did sanctions help Putin?," Discussion Papers 2019/7, Free University Berlin, School of Business & Economics.
    6. Felbermayr, Gabriel & Syropoulos, Constantinos & Yalcin, Erdal & Yotov, Yoto V., 2019. "On the effects of sanctions on trade and welfare: New evidence based on structural gravity and a new database," Kiel Working Papers 2131, Kiel Institute for the World Economy (IfW Kiel).
    7. Philippe Aghion & Ralph Haas & Guido Friebel & Sergei Guriev & Jan Luksic, 2017. "Introduction to the Special Issue on the Economics of the Middle East and North Africa," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 25(2), pages 141-148, April.

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    More about this item

    Keywords

    National Security; Sanctions; Iran JEL Classification: D74; H56; F51.;
    All these keywords.

    JEL classification:

    • 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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