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Do Sanctions Always Stigmatize? The Effects of Economic Sanctions on Foreign Aid

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  • Bryan R. Early
  • Amira Jadoon

Abstract

A prevalent view among both scholars and policymakers is that economic sanctions stigmatize and isolate their targets. According to this perspective, the stigma associated with economic sanctions should signal to foreign aid donors that they should be more cautious and restrained in providing assistance to sanctioned states. We test this signaling-based theory via a large-n analysis of the impact that sanctions imposed by the United States and those supported by the United Nations (UN) had on the aid flows of 133 recipient states from 1960--2000. Contrary to expectations, our results indicate that being subject to sanctions supported by the UN does not have a negative effect on target states’ aid flows, and being sanctioned by the United States actually has a positive effect on them. We explore two potential explanations for our puzzling findings based upon donor self-interest and donor altruism via a scoping analysis of eight sanctions cases in which target states received greater than expected aid flows. Our findings suggest that theories based upon donor self-interest represent the most promising explanation for why individual donors may increase their aid to sanctioned states.

Suggested Citation

  • Bryan R. Early & Amira Jadoon, 2016. "Do Sanctions Always Stigmatize? The Effects of Economic Sanctions on Foreign Aid," International Interactions, Taylor & Francis Journals, vol. 42(2), pages 217-243, March.
    • Handle: RePEc:taf:ginixx:v:42:y:2016:i:2:p:217-243
    DOI: 10.1080/03050629.2016.1093477
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    Cited by:

    1. Hoon Lee & David Lektzian & Glen Biglaiser, 2023. "The Effects of Economic Sanctions on Foreign Asset Expropriation," Journal of Conflict Resolution, Peace Science Society (International), vol. 67(2-3), pages 266-296, February.
    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. Jakub Horak, 2021. "Sanctions as a Catalyst for Russia’s and China’s Balance of Trade: Business Opportunity," JRFM, MDPI, vol. 14(1), pages 1-26, January.
    4. Wonjae Hwang & Jeeseon Hwang, 2023. "Health aid for states with dissimilar foreign policy preferences, a tool for peace?," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 26(1), pages 55-70, March.
    5. Jin Mun Jeong & Dursun Peksen, 2019. "Domestic Institutional Constraints, Veto Players, and Sanction Effectiveness," Journal of Conflict Resolution, Peace Science Society (International), vol. 63(1), pages 194-217, January.
    6. 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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