Article in Journal

Evidence and Policy Implications of Sanctions in the Long Run: The Case of Iran

Dario Laudati
CESifo, Munich, 2023

EconPol Forum 24 (3), 27-30
  • Periods of prolonged sanctions can lead to large cumulated economic losses
  • Oil revenue falls, exchange rate depreciations, and inflation may be key pass-through mechanisms to explain lower output growth
  • Direct and indirect effects of sanctions may become entrenched over time, leading to resource misallocation
  • Exclusion from foreign markets pushed Iran to develop in-house innovations and domestic product substitutes
  • Sanctions may lead to additional socio-economic effects, such as gender-biased policies and reduction of education resources