Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/285346 
Year of Publication: 
2024
Citation: 
[Journal:] DIW Weekly Report [ISSN:] 2568-7697 [Volume:] 14 [Issue:] 8 [Year:] 2024 [Pages:] 65-72
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Countries increasingly form alliances to collectively impose sanctions. However, the resulting impact of such coordination remains unclear. Analyzing the 2014 wave of sanctions against Russia over 400,000 simulations with a quantitative trade model, this report demonstrates that multilateral cooperation through coalitions simultaneously reduced domestic welfare losses incurred from sanctions and intensified welfare losses imposed on Russia. Results also reveal significant disparities within the coalition, with Russia sanctions placing relatively high economic costs on Baltic nations that can be mitigated through a burden-sharing program. Hypothetical cooperation by emerging economies like China is also shown to substantially raise the force of sanctions against Russia.
Subjects: 
Sanctions
Alliances
Global value chains
JEL: 
F13
F14
F17
F51
Persistent Identifier of the first edition: 
Document Type: 
Article

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