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Disentangling the Impact of Wars and Sanctions on International Trade: Evidence from Former Yugoslavia

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  • Olivier Lamotte

    (ESG Management School, 25 rue Saint-Ambroise, 75011 Paris, France.)

Abstract

Wars and sanctions tend to reduce the trade of the countries involved. However, these events often occur concurrently, which complicates the assessment of their effects. This article studies the case of the former Yugoslavia to disentangle the respective effects of these events. We show that the wars and sanctions caused a reduction in trade not only between the countries involved but also with other countries. Moreover, the impact of the sanctions on trade volume is more pronounced than the impact of war. Finally, we show that the effects of both war and sanctions persisted for several years after they ended.

Suggested Citation

  • Olivier Lamotte, 2012. "Disentangling the Impact of Wars and Sanctions on International Trade: Evidence from Former Yugoslavia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(3), pages 553-579, September.
    • Handle: RePEc:pal:compes:v:54:y:2012:i:3:p:553-579
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    Cited by:

    1. Lucie Coufalová, 2020. "Sankce západních zemí a ruská odvetná opatření: dopad na české exporty [Sanctions by Western Countries and Russian Countermeasures: Impact on Czech Exports]," Politická ekonomie, Prague University of Economics and Business, vol. 2020(3), pages 348-366.
    2. Borsky, Stefan & Leiter, Andrea Maria, 2022. "International trade in rough diamonds and the Kimberley Process Certification Scheme," World Development, Elsevier, vol. 152(C).
    3. Liudmila Popova & Ehsan Rasoulinezhad, 2016. "Have Sanctions Modified Iran’s Trade Policy? An Evidence of Asianization and De-Europeanization through the Gravity Model," Economies, MDPI, vol. 4(4), pages 1-15, October.
    4. Marina Tkalec & Ivan Žilić, 2021. "Does proximity to conflict affect tourism: Evidence from NATO bombing," PLOS ONE, Public Library of Science, vol. 16(10), pages 1-21, October.
    5. Yan, Jiaqiang & Zhou, Yonghong, 2021. "Economic return to political support: Evidence from voting on the representation of China in the United Nations," Journal of Asian Economics, Elsevier, vol. 75(C).
    6. Devasmita Jena & C. Akash & Prachi Gupta, 2024. "Deflecting economic sanctions: do trade and political alliances matter?," International Economics and Economic Policy, Springer, vol. 21(3), pages 543-567, July.
    7. Devasmita Jena & C. Akash & Prachi Gupta, 2023. "Deflecting Economic Sanctions: Do Trade and Political Alliances Matter?," Working Papers 2023-248, Madras School of Economics,Chennai,India.

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