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Sanctions and Export Deflection: Evidence from Iran

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  • Jamal Ibrahim Haidar

Abstract

Do export sanctions cause export defletion? 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.

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  • Jamal Ibrahim Haidar, "undated". "Sanctions and Export Deflection: Evidence from Iran," Working Paper 445126, Harvard University OpenScholar.
  • Handle: RePEc:qsh:wpaper:445126
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    File URL: http://scholar.harvard.edu/haidar/node/445126
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    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
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F6 - International Economics - - Economic Impacts of Globalization

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