Quantifying the partial and general equilibrium effects of sanctions on Russia
Peer reviewed, Journal article
Published version
Date
2023Metadata
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- Institutt for samfunnsøkonomi [1170]
- Publikasjoner fra CRIStin - NTNU [38294]
Original version
10.1111/roie.12707Abstract
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.