Citation

Discussion Paper Details

Please find the details for DP13549 in an easy to copy and paste format below:

Full Details

Title: Which Sanctions Matter? Analysis of the EU/Russian Sanctions of 2014

Author(s): Matej Belin and Jan Hanousek

Publication Date: February 2019

Keyword(s): Bilateral trade flows, Differences-in-differences, International trade, Russia, sanctions and UNCTAD/BACI data

Programme Area(s): International Trade and Regional Economics

Abstract: In this paper we use a natural experiment of reciprocal imposition of trade sanctions by Russia and the EU since 2014. Using UNCTAD/BACI bilateral flows data we take this unique opportunity to analyse both sanctions. In particular, we study the effectiveness of narrow versus broadly defined sanctions, and differences in the effectiveness of sanctions imposed on exports and imports. We show that the Russian sanctions imposed on European and American food imports resulted in about 8 times stronger decline in trade flows than those imposed by the EU and the US on exports of extraction equipment. These results do not appear to be driven by diversion of trade flows via non-sanctioning countries. Hence the difference in sanctions' effectiveness can be attributed to the broader range of sanctioned goods and potentially to a stronger position of enforcement of sanctions on imports rather than exports.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13549

Bibliographic Reference

Belin, M and Hanousek, J. 2019. 'Which Sanctions Matter? Analysis of the EU/Russian Sanctions of 2014'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13549