Sanctions and counter-sanctions : What did they do?
Barseghyan, Gayane (09.12.2019)
Numero
24/2019Julkaisija
Bank of Finland
2019
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201912101702Tiivistelmä
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.
Sisällysluettelo
1 Introduction 3
2 Literature review 5
3 Empirical methodology and data 8
3.1 Methodology 8
3.2 Data and control countries 9
4 Estimation results 10
4.1 Estimated effects 10
4.2 Inference about the estimated effects 15
4.3 Results with random donor samples 7
5 Concluding remarks 19
6 References 20
7 Appendix 24
2 Literature review 5
3 Empirical methodology and data 8
3.1 Methodology 8
3.2 Data and control countries 9
4 Estimation results 10
4.1 Estimated effects 10
4.2 Inference about the estimated effects 15
4.3 Results with random donor samples 7
5 Concluding remarks 19
6 References 20
7 Appendix 24