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

Author

Listed:
  • Draca, Mirko

    (Department of Economics, University of Warwick)

  • Garred, Jason

    (Department of Economics, University of Ottawa)

  • Stickland, Leanne

    (Deloitte UK)

  • Warrinnier, Nele

    (School of Economics and Finance, Queen Mary University of London & LICOS Centre for Institutions and Economic Performance, KU Leuven)

Abstract

How successful are sanctions at targeting the economic interests of political elites in a ected countries? We study the case of Iran, using information on the stock exchangelisted assets of two speci c political entities with signi cant in uence over the direction of Iran's nuclear program. Our identi cation strategy focuses on the process of negotiations for sanctions removal, examining which interests bene t most from news about diplomatic progress. The results indicate the `bluntness' of sanctions on Iran, but also provide evidence of their e ectiveness in generating substantial economic incentives for elite policymakers to negotiate a deal for sanctions relief. JEL Classification: D74 ; H56 ; F51

Suggested Citation

  • Draca, Mirko & Garred, Jason & Stickland, Leanne & Warrinnier, Nele, 2022. "On Target? The Incidence of Sanctions Across Listed Firms in Iran," The Warwick Economics Research Paper Series (TWERPS) 1400, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:1400
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    Cited by:

    1. Aflatooni, Abbas & Ghaderi, Kaveh & Mansouri, Kefsan, 2022. "Sanctions against Iran, political connections and speed of adjustment," Emerging Markets Review, Elsevier, vol. 51(PB).
    2. Nigmatulina, Dzhamilya, 2022. "Sanctions and misallocation. How sanctioned firms won and Russia lost," LSE Research Online Documents on Economics 118037, London School of Economics and Political Science, LSE Library.
    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," The 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. Safoura Moeeni, 2022. "The Intergenerational Effects of Economic Sanctions," The World Bank Economic Review, World Bank Group, vol. 36(2), pages 269-304.
    8. Felbermayr, Gabriel & Kirilakha, Aleksandra & Syropoulos, Constantinos & Yalcin, Erdal & Yotov, Yoto V., 2020. "The global sanctions data base," European Economic Review, Elsevier, vol. 129(C).
    9. Jie Sun & Lewis Makosa & Jinkun Yang & Fangyuan Yin & Moses Jachi & Wellington Garikai Bonga, 2021. "Externalities of economic sanctions on performance of intra‐industry non‐sanctioned firms: Evidence from Zimbabwe," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(5), pages 643-664, November.
    10. Dzhamilya Nigmatulina, 2022. "Sanctions and misallocation. How sanctioned firms won and Russia lost," CEP Discussion Papers dp1886, Centre for Economic Performance, LSE.
    11. 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;
    All these keywords.

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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    This paper has been announced in the following NEP Reports:

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