Quantifying the partial and general equilibrium effects of sanctions on Russia
Peer reviewed, Journal article
Published version
Permanent lenke
https://hdl.handle.net/11250/3116272Utgivelsesdato
2023Metadata
Vis full innførselSamlinger
- Institutt for samfunnsøkonomi [1182]
- Publikasjoner fra CRIStin - NTNU [38672]
Originalversjon
10.1111/roie.12707Sammendrag
This paper evaluates the effects of sanctions on Russia between 2014 and 2019 and the resulting countersanctions. We estimate their impact on trade in a gravity framework, allowing for treatment heterogeneity among pairs and sectors, and use the estimated elasticities in a general equilibrium analysis. We find that the sanctions decreased trade with Russia in key sectors, translating to a loss in real income in Russia by 0.3%. Full decoupling of the EU and its allies from Russia would increase this effect to over 4%. Our results emphasize the role of deep sanctions as a foreign policy instrument and international cooperation.