Publication: Who is afraid of sanctions? The macroeconomic and distributional effects of the sanctions against Iran
Loading...
Identifiers
Publication date
2021-12-01
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
Wiley
Abstract
The sanctions imposed on Iran at the beginning of 2012
have simultaneously limited the country's access to the
international financial system, levied a strict boycott on
Iran's oil and petrochemical exports, and limited imports
of intermediate goods. This paper tries to quantify the
aggregate and heterogeneous effects of these sanctions.
Applying the synthetic control method, I show that the
sanctions had persistent and significant effects on the
Iranian economy. The cost reached its maximum of
19.1% of real gross domestic product 4 years after the
application of the sanctions, and the economy has not
fully recovered after their removal. I trace the poverty
dynamics for different household groups after the sanctions
by adopting a synthetic panel using Iran's household
income and expenditure survey data. Inconsistently
with the sanctions' initial goals, poverty dynamics suggest
that households working in governmental sectors and
educated households are unaffected by the sanctions.
Instead, the sanctions condemn young, illiterate, rural, or
religious minority households to poverty.
Description
Keywords
Heterogeneous poverty dynamics, Sanction, Synthetic control method, Synthetic panel
Bibliographic citation
Ghomi, M. (2021). Who is afraid of sanctions? The macroeconomic and distributional effects of the sanctions against Iran. En Economics & Politics, pp 1-34