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Sanctions and Export Deflection: Evidence from Iran

Author

Listed:
  • Jamal Ibrahim Haider

    (Center for International Development at Harvard University)

Abstract

Do export sanctions cause export deflection? Data on Iranian non-oil exporters between January 2006 and June 2011 shows that two-thirds of these exports were deflected to non-sanctioning countries after sanctions were imposed in 2008, and that at this time aggregate exports actually increased. Exporting firms reduced prices and increased quantities when exporting to a new destination, however, and suffered welfare losses as a result.

Suggested Citation

  • Jamal Ibrahim Haider, 2017. "Sanctions and Export Deflection: Evidence from Iran," Growth Lab Working Papers 93, Harvard's Growth Lab.
    • Handle: RePEc:glh:wpfacu:93
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    File URL: http://growthlab.cid.harvard.edu/files/growthlab/files/working-paper-80.pdf
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    More about this item

    Keywords

    sanctions; trade policy; globalization; export deflection; Iran;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F6 - International Economics - - Economic Impacts of Globalization

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