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The economic effects of EU sanctions imposed on Myanmar

Grabo, Lisa LU (2016) NEKH02 20161
Department of Economics
Abstract
The EU imposed targeted sanctions on Myanmar in 1996, which were later lifted in 2013. The
sanctions were adopted because of the violation of human rights and the absence of
democracy in the country. This study aims to examine the effects on Myanmar’s exports, due
to the sanctions. The paper takes two approaches. First, it applies a gravity model to
distinguish if the sanctions had an impact on the EU’s imports from Myanmar. Secondly, the
paper entails a field study, which aims to capture any effects of the sanctions that a gravity
model cannot observe. The estimation results suggest that the value of the EU imports from
Myanmar is affected positively and significantly by the action of lifting the sanctions.
However, the action of... (More)
The EU imposed targeted sanctions on Myanmar in 1996, which were later lifted in 2013. The
sanctions were adopted because of the violation of human rights and the absence of
democracy in the country. This study aims to examine the effects on Myanmar’s exports, due
to the sanctions. The paper takes two approaches. First, it applies a gravity model to
distinguish if the sanctions had an impact on the EU’s imports from Myanmar. Secondly, the
paper entails a field study, which aims to capture any effects of the sanctions that a gravity
model cannot observe. The estimation results suggest that the value of the EU imports from
Myanmar is affected positively and significantly by the action of lifting the sanctions.
However, the action of imposing sanctions did not have a significant effect. The key findings
from the field study are that the industries that were mainly affected were the industries of
garment manufacturing, timber, fishery and agricultural products. These industries were more
affected indirectly than directly by the sanctions. This is because new requirements were
developed during the time sanctions were imposed, which made it more difficult for
companies to compete once the sanctions were lifted. There is also the indirect effect of a
growing reputational risk for European businesses to trade with Myanmar, and the GSP
removal that made it more difficult for Myanmar exporters to compete on the European
market. (Less)
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author
Grabo, Lisa LU
supervisor
organization
course
NEKH02 20161
year
type
M2 - Bachelor Degree
subject
keywords
Gravity model, field study, Myanmar, sanctions, EU
language
English
id
8890222
date added to LUP
2016-09-14 13:19:10
date last changed
2016-09-14 13:19:10
@misc{8890222,
  abstract     = {The EU imposed targeted sanctions on Myanmar in 1996, which were later lifted in 2013. The
sanctions were adopted because of the violation of human rights and the absence of
democracy in the country. This study aims to examine the effects on Myanmar’s exports, due
to the sanctions. The paper takes two approaches. First, it applies a gravity model to
distinguish if the sanctions had an impact on the EU’s imports from Myanmar. Secondly, the
paper entails a field study, which aims to capture any effects of the sanctions that a gravity
model cannot observe. The estimation results suggest that the value of the EU imports from
Myanmar is affected positively and significantly by the action of lifting the sanctions.
However, the action of imposing sanctions did not have a significant effect. The key findings
from the field study are that the industries that were mainly affected were the industries of
garment manufacturing, timber, fishery and agricultural products. These industries were more
affected indirectly than directly by the sanctions. This is because new requirements were
developed during the time sanctions were imposed, which made it more difficult for
companies to compete once the sanctions were lifted. There is also the indirect effect of a
growing reputational risk for European businesses to trade with Myanmar, and the GSP
removal that made it more difficult for Myanmar exporters to compete on the European
market.},
  author       = {Grabo, Lisa},
  keyword      = {Gravity model,field study,Myanmar,sanctions,EU},
  language     = {eng},
  note         = {Student Paper},
  title        = {The economic effects of EU sanctions imposed on Myanmar},
  year         = {2016},
}