Article in Journal
On the Economic Effects of Financial Sanctions: Evidence from Germany
Stefan Goldbach, Volker Nitsch
CESifo, Munich, 2023
EconPol Forum 24 (3), 19-22
CESifo, Munich, 2023
EconPol Forum 24 (3), 19-22
- Financial sanctions are effective. They have a strong and immediate negative effect on direct financial flows with the sanctioned country
- Financial sanctions imposed by a subset of countries, such as the European Union alone, face a higher risk of sanctions evasion, as opposed to sanctions imposed by the United Nations
- Financial sanctions tend to be smart, with their effects mostly concentrated on the targeted activity. There is limited evidence that financial sanctions create collateral damage by reducing trade in goods and services
- Domestic firms doing business with sanctioned countries tend to be large enough to divert their activities to alternative business opportunities with non-sanctioned countries when sanctions are imposed.
Included in
EconPol Forum 03/2023: How Sanctions Work - and Which Goals They Fail to Achieve
CESifo, Munich, 2023