Sanctions and export deflection: evidence from Iran
Санкции и перенаправление экспорта: данные по Ирану
2017-02-15
SCID: 54.1/xdmamv9n
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Iranian non-oil exportersexport deflectionexport sanctionssanctioning countrieswelfare losses
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Abstract (AI)
Do export sanctions cause export deflection? Data on Iranian non-oil exporters between January 2006 and June 2011 shows that two-thirds of these exports were deflected to non-sanctioning countries after sanctions were imposed in 2008, and that at this time aggregate exports actually increased. Exporting firms reduced prices and increased quantities when exporting to a new destination, however, and suffered welfare losses as a result.
Key Findings
1
Despite the sanctions, Iran’s aggregate non-oil exports increased after 2008.
2
Export deflection imposed welfare losses on Iranian exporting firms despite increased aggregate exports.
3
Following the 2008 sanctions, two-thirds of Iranian non-oil exports were deflected to non-sanctioning countries.
4
When entering new destinations, exporting firms lowered prices and increased quantities.
Research Object
Iranian non-oil exporters and their exports during the 2008 export sanctions
Research Subject
Export deflection to non-sanctioning countries and the resulting changes in export prices, quantities, and exporter welfare
Publication Details
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2017-02-15
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