Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257111 
Year of Publication: 
2020
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 8 [Issue:] 3 [Article No.:] 62 [Publisher:] MDPI [Place:] Basel [Year:] 2020 [Pages:] 1-22
Publisher: 
MDPI, Basel
Abstract: 
Political unrest inevitably has consequences for a national economy. International trade in a globalised world has great importance for countries. Unfortunately, due to various political events, countries apply some restrictions to each other. In 2014, Western countries imposed sanctions on trade with Russia, due to the annexation of Crimea. As a response, Russia announced an embargo on importing of some goods from European and North American countries, as well as Australia. The current study investigates the economic impact on EU countries due to the mentioned embargo. The EU countries were grouped according to the average for 1998-2018 exports of products to Russia using a cluster analysis. After the clustering, the gravity model was employed to develop the equations representing the international trade between each cluster and Russia. Although Russia declared an embargo on countries associated with the same group of goods, the economic impact on their economies was different. This study has a couple of limitations. The research reflects only the impact of the embargo on exports regardless of some possible indirect effects; the study assesses the export of all sectors due to limited data; and because the restrictions are applied only to the food sector, the research shows only relative changes in exports.
Subjects: 
embargo
embargo impact on economy
international trade
political decisions
cluster analysis
gravity model
JEL: 
F01
F51
F62
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.