Sanctions and Export Deflection: Evidence from Iran

Economic Policy, April 2017, Vol. 32(90), pp. 319-355

Posted: 27 Apr 2017 Last revised: 23 May 2017

Date Written: April 19, 2017

Abstract

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.

Keywords: Sanctions; Trade; Iran; Export Deflection

JEL Classification: F13; F14; F15; F23; F5; F6

Suggested Citation

Haidar, Jamal Ibrahim, Sanctions and Export Deflection: Evidence from Iran (April 19, 2017). Economic Policy, April 2017, Vol. 32(90), pp. 319-355 , Available at SSRN: https://ssrn.com/abstract=2955143

Jamal Ibrahim Haidar (Contact Author)

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

HOME PAGE: http://scholar.harvard.edu/haidar

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