How Do US Economic Sanctions Affect EU's Trade with Target Countries?
Authors:
- 17 July 2009
- journal article
- Published by Wiley in The World Economy
- Vol. 32 (8) , 1223-1244
Abstract
We investigate the impact of US economic sanctions on EU's trade using a panel data approach expressed in a two‐level framework. Both multilateral and unilateral sanctions involving the US and the EU have a negative impact on EU trade (total, imports and exports). We argue that unilateral sanctions, if extensive in nature, would have a depressing impact on target countries’ trade, especially in the stage after sanctions have been imposed. Over time, both multilateral and unilateral sanctions lead to an increase in a target country's exports to the EU, lending support to the third‐country effect of sanctions.Keywords
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