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Sanctions and counter-sanctions: What did they do?

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  • Barseghyan, Gayane

Abstract

Taking the multilateral sanctions program launched against Russia in 2014 as a case study, this paper investigates the economic effects of sanctions and counter-sanctions on a target economy. A synthetic control method for comparative case studies is employed to construct counterfactuals. The estimation results demonstrate that in Russia following sanctions and counter-sanctions real GDP per capita, FDI net in flows and income inequality fell, while the ban on agricultural and food imports introduced by Russia boosted the domestic agricultural sector, resulting in higher agricultural productivity and farm worker incomes. Various placebo studies confirm the significance of obtained estimates. Results are robust to random donor samples.

Suggested Citation

  • Barseghyan, Gayane, 2019. "Sanctions and counter-sanctions: What did they do?," BOFIT Discussion Papers 24/2019, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitp:bdp2019_024
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    References listed on IDEAS

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    Cited by:

    1. Mikhail Mamonov & Anna Pestova, 2023. "The Price of War: Macroeconomic and Cross-Sectional Effects of Sanctions on Russia," CERGE-EI Working Papers wp756, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    2. Frants, Marina, 2024. "Measuring the impact of economic sanctions on the Russian economy using the synthetic control group method," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 74, pages 104-123.
    3. Vladimír Hlásny, 2022. "Les revenus des ménages dans la Russie de Poutine : changement distributionnel entre groupes socioéconomiques, 2000-2016," Revue d’économie du développement, De Boeck Université, vol. 30(1), pages 35-96.
    4. Heydarian, Samira & Pahlavani, Mosayeb & Mirjalili, Seyed Hossein, 2023. "Financial Sanctions and the Imports of Intermediate and Capital Goods in Iran: DID Method," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 15(2), pages 101-134.

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    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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