Sanctions and export deflection evidence from Iran

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. Expor...

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Bibliographic Details
Published in:Economic policy Vol. 32; no. 90; pp. 319 - 355
Main Authors: Haidar, Jamal Ibrahim, Güell, Maia
Format: Journal Article
Language:English
Published: Oxford Oxford University Press 01-04-2017
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Summary: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.
ISSN:0266-4658
1468-0327
DOI:10.1093/epolic/eix002