Abstract:
This paper provides evidence on the effects of sanctions on economic growth for a sample of 107 countries during 1960-2020. The main findings from our empirical investigation are as follows: sanctions have neither contemporaneous nor delayed effects on output growth; in contrast, we find that military conflicts have strong negative impact on growth; differentiating by the senders, we find that both unilateral and multilateral sanctions are non-effective, whereas US sanctions have strong negative effects on growth; as for the effects of various types of sanctions, we provide evidence on the negative impact of trade and financial sanctions, whereas travel and other sanctions do not affect output growth.