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The Impacts of Energy Sanctions on the Black-Market Premium: Evidence from Iran

Author

Listed:
  • Omid Zamani

    (Thünen Institute of Market Analysis & Christian-Albrechts-University Kiel)

  • Mohammad Reza Farzanegan

    (Philipps-Universität Marburg, Center for Near and Middle Eastern Studies (CNMS))

  • Jens-Peter Loy

    (Institute of Agricultural Economics, Christian-Albrechts-University Kiel)

  • Majid Einian

    (Monetary and Banking Research Institute, Central Bank of Iran)

Abstract

This study extends the literature by analyzing the effects of energy sanctions on the black-market premium on the Iranian Rial – U.S. dollar exchange rate. Using a nonlinear autoregressive distributed lag (NARDL) model from 1959 to 2017, we find that falling oil revenues as a result of sanctions have an increasing impact on the black-market premium.

Suggested Citation

  • Omid Zamani & Mohammad Reza Farzanegan & Jens-Peter Loy & Majid Einian, 2021. "The Impacts of Energy Sanctions on the Black-Market Premium: Evidence from Iran," Economics Bulletin, AccessEcon, vol. 41(2), pages 432-443.
    • Handle: RePEc:ebl:ecbull:eb-20-00745
    as

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    References listed on IDEAS

    as
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    Cited by:

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    2. Armin Razmjoo & Arezoo Ghazanfari & Poul Alberg Østergaard & Sepideh Abedi, 2023. "Design and Analysis of Grid-Connected Solar Photovoltaic Systems for Sustainable Development of Remote Areas," Energies, MDPI, vol. 16(7), pages 1-21, March.
    3. Mohammad Reza Farzanegan & Hans Philipp Hofmann, 2021. "An Old Plug and a New Virus: Effect of Public Corruption on the Covid-19 Immunization Progress," CESifo Working Paper Series 9307, CESifo.
    4. Iman Cheratian & Saleh Goltabar & Mohammad Reza Farzanegan, 2022. "Survival Strategies Under Sanctions: Firm-Level Evidence from Iran," Working Papers 1569, Economic Research Forum, revised 20 Aug 2022.
    5. Sajjad Faraji Dizaji & Mohammad Reza Farzanegan, 2024. "The Impact of US Trade Sanctions on the Global Trade of Target Countries: Do the Political Institutions of the Targets Matter?," CESifo Working Paper Series 10910, CESifo.
    6. Ge Gao & Alex Nikolsko‐Rzhevskyy & Oleksandr Talavera, 2023. "Can central banks be heard over the sound of gunfire?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 46(S1), pages 183-203, December.

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    More about this item

    Keywords

    Energy Shocks; Sanction; Iran; Black-Market Premium; NARDL.;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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