Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212932 
Year of Publication: 
2019
Series/Report no.: 
BOFIT Discussion Papers No. 24/2019
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
Taking the multilateral sanctions program launched against Russia in 2014 as a case study, this paper investigates the economic effects of sanctions and counter-sanctions on a target economy. A synthetic control method for comparative case studies is employed to construct counterfactuals. The estimation results demonstrate that in Russia following sanctions and counter-sanctions real GDP per capita, FDI net in flows and income inequality fell, while the ban on agricultural and food imports introduced by Russia boosted the domestic agricultural sector, resulting in higher agricultural productivity and farm worker incomes. Various placebo studies confirm the significance of obtained estimates. Results are robust to random donor samples.
JEL: 
C33
F51
O50
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-306-5
Document Type: 
Working Paper

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