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Economic Sanctions and Demand for Protection

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  • Amy Pond

Abstract

How do the distributional consequences of economic sanctions impact future trade policy? Regardless of whether sanctions are effective in achieving concessions, sanctions restrict international trade flows, creating rents for import-competing producers, who are protected from international competition. These rents can then be used to pressure the government to implement protectionist policies. Thus, while the lifting of sanctions directly facilitates some international transactions, sanctions also have an indirect effect. They create powerful domestic interest groups in the sanctioned country who seek market protection. I use multiple estimators to evaluate the effect of trade sanctions on tariff rates. The evidence is consistent with the argument that sanctions increase market protection in both the short and long run.

Suggested Citation

  • Amy Pond, 2017. "Economic Sanctions and Demand for Protection," Journal of Conflict Resolution, Peace Science Society (International), vol. 61(5), pages 1073-1094, May.
    • Handle: RePEc:sae:jocore:v:61:y:2017:i:5:p:1073-1094
    DOI: 10.1177/0022002715596777
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    References listed on IDEAS

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    Cited by:

    1. Jerg Gutmann & Matthias Neuenkirch & Florian Neumeier & Armin Steinbach, 2018. "Economic Sanctions and Human Rights: Quantifying the Legal Proportionality Principle," Research Papers in Economics 2018-02, University of Trier, Department of Economics.
    2. Ilieva, Jana & Dashtevski, Aleksandar & Kokotovic, Filip, 2018. "Economic Sanctions In Internationallaw," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 9(2), pages 201-211.
    3. Mirkina, Irina, 2018. "FDI and sanctions: An empirical analysis of short- and long-run effects," European Journal of Political Economy, Elsevier, vol. 54(C), pages 198-225.

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