IDEAS home Printed from https://ideas.repec.org/a/psl/bnlqrr/200214.html
   My bibliography  Save this article

Economic sanctions and US international business interests

Author

Listed:
  • Hossein Askari

    (The George Washington University, International Business and International Affairs, Washington)

  • John Forrer

    (The George Washington University, Institute for Global Management and Research, Washington)

  • Hildy Teegen

    (The George Washington University, International Business and International Affairs, Washington)

  • Jiawen Yang

    (The George Washington University, International Business and International Affairs, Washington)

Abstract

Economic sanctions are seen as a foreign policy instrument less severe than military engagement but more potent than diplomacy. The assessment of the economic impact of sanctions invariably focuses on direct bilateral trade, with little regard to indirect costs. In the case of sanctions on Iran, the real cost to Iran and the U.S. is not so much due to reduced trade but to factors such as missed investment and joint venture opportunities, especially in the energy sector. The significant size of these costs for Iran will make it difficult for Iran to resume business as usual with U.S. companies whensanctions are lifted, and for U.S. energy companies, their long-term competitiveness in Iran and also globally will be reduced.

Suggested Citation

  • Hossein Askari & John Forrer & Hildy Teegen & Jiawen Yang, 2002. "Economic sanctions and US international business interests," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 55(220), pages 55-69.
    • Handle: RePEc:psl:bnlqrr:2002:14
    as

    Download full text from publisher

    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9904/9786
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. International Monetary Fund, 1995. "Islamic Republic of Iran: Recent Economic Developments," IMF Staff Country Reports 1995/121, International Monetary Fund.
    2. International Monetary Fund, 2000. "Islamic Republic of Iran: Recent Economic Developments," IMF Staff Country Reports 2000/120, International Monetary Fund.
    3. Gary Clyde Hufbauer & Kimberly Ann Elliott & Tess Cyrus & Elizabeth Winston, 1997. "US Economic Sanctions: Their Impact on Trade, Jobs, and Wages," Working Paper Series Working Paper Special (2), Peterson Institute for International Economics.
    4. Gary Clyde Hufbauer & Jeffrey J. Schott & Kimberly Ann Elliott, 1990. "Economic Sanctions Reconsidered: 2nd Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 82, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zornitsa Kutlina-Dimitrova, 2017. "The economic impact of the Russian import ban: a CGE analysis," International Economics and Economic Policy, Springer, vol. 14(4), pages 537-552, October.
    2. Dizaji, S.F. & van Bergeijk, P.A.G., 2012. "Early phase success and long run failure of economic sanctions. With an application to Iran," ISS Working Papers - General Series 544, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    3. Roberto Lampa & Nadia Garbellini, 2022. "Sanzioni, shock da offerta e inflazione: la rilevanza del conflitto russo-ucraino (Economic sanctions, supply-side shock and inflation: relevance of the Russian-Ukrainian war)," Moneta e Credito, Economia civile, vol. 75(298), pages 95-99.
    4. Ghahroudi Mehdi Rasouli & Chong Li Choy, 2020. "The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran," Economics and Business, Sciendo, vol. 34(1), pages 15-34, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gabriel Felbermayr & Erdal Yalcin & Philipp Grübener, 2014. "Ökonomische Aspekte des Russlandkonfliktes: Ursachen, Kosten, Optionen," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 67(14), pages 35-43, July.
    2. Caruso Raul, 2003. "The Impact of International Economic Sanctions on Trade: An Empirical Analysis," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 9(2), pages 1-36, April.
    3. Busse, Matthias, 2003. "Democracy and FDI," HWWA Discussion Papers 220, Hamburg Institute of International Economics (HWWA).
    4. Dizaji, S.F. & Lis, P. & Murshed, S.M. & Zweiri, M., 2020. "What the political economy literature tells us about blockades and sanctions," ISS Working Papers - General Series 130655, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    5. Seitz, William Hutchins, 2016. "Stock market reactions to conflict diamond trading restrictions and controversies," Business and Politics, Cambridge University Press, vol. 18(1), pages 63-84, April.
    6. Michael Horowitz & Dan Reiter, 2001. "When Does Aerial Bombing Work?," Journal of Conflict Resolution, Peace Science Society (International), vol. 45(2), pages 147-173, April.
    7. Anne-Célia Disdier & Lionel Fontagné, 2010. "Trade impact of European measures on GMOs condemned by the WTO panel," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 495-514, September.
    8. Baran Han, 2018. "The role and welfare rationale of secondary sanctions: A theory and a case study of the US sanctions targeting Iran," Conflict Management and Peace Science, Peace Science Society (International), vol. 35(5), pages 474-502, September.
    9. Kimberly Ann Elliott, 2003. "Economic Leverage and the North Korean Nuclear Crisis," Policy Briefs PB03-03, Peterson Institute for International Economics.
    10. Stephen Knack, 2001. "Aid Dependence and the Quality of Governance: Cross‐Country Empirical Tests," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 310-329, October.
    11. Daniel Berger & William Easterly & Nathan Nunn & Shanker Satyanath, 2013. "Commercial Imperialism? Political Influence and Trade during the Cold War," American Economic Review, American Economic Association, vol. 103(2), pages 863-896, April.
    12. Breßlein, Martin & Schmaljohann, Maya, 2013. "Surrender your market! Do the G5 countries use World Bank Trade Conditionality to promote Trade?," Working Papers 0550, University of Heidelberg, Department of Economics.
    13. Ralph, Lauren, 2019. "In Consideration of Economic Sanctions," Studies in Applied Economics 131, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    14. Mohammad Aghapour Sabbaghi & Afsaneh Naeimifar, 2022. "Analysis of import substitution policy with an emphasis on environmental issues based on environmental input–output (EIO) model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 14130-14162, December.
    15. Jacques Fontanel & Michael Ward, 2003. "The price of terrorism," Working Papers hal-03021415, HAL.
    16. David Lektzian & Mark Souva, 2001. "Institutions and International Cooperation," Journal of Conflict Resolution, Peace Science Society (International), vol. 45(1), pages 61-79, February.
    17. O'Rourke, Kevin, 2005. "The Worldwide Economic Impact of the Revolutionary and Napoleonic Wars," CEPR Discussion Papers 5079, C.E.P.R. Discussion Papers.
    18. Carlo de Bassa Scheresberg, Francesco Passarelli, 2011. "Strategic Sovereign Defaults under International Sanctions," ISLA Working Papers 42, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy.
    19. Inman, Robert P. & Rubinfeld, Daniel L., 2012. "Understanding the Democratic Transition in South Africa," Berkeley Olin Program in Law & Economics, Working Paper Series qt4mp5t4ff, Berkeley Olin Program in Law & Economics.
    20. Cooper, Richard, 2004. "Is "Economic Power" a Useful and Operational Concept?," Scholarly Articles 3677050, Harvard University Department of Economics.

    More about this item

    Keywords

    International Business; Joint Venture; Policy; Trade;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:psl:bnlqrr:2002:14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carlo D'Ippoliti (email available below). General contact details of provider: http://www.economiacivile.it .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.