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Escaping Sanctions by Trade Diverting

Jildenbäck, Hampus LU (2017) NEKP01 20171
Department of Economics
Abstract
Sanctions are one of the main policy tools used in order change behaviour of countries involved in conflicts, without using armed forces. This paper examines the possibility for a targeted country to escape the potential negative effects from sanctions by increasing trade with third countries that has not imposed sanctions. The analysis is carried out on the specific case of the sanctions against Russia that was imposed by several countries and institutions as a reaction to the Russia-Ukraine conflict regarding Crimea. The paper analyse the effects of these sanctions by empirically estimate Russian exports between the years 2007-2015. The estimations are performed with different specifications of a gravity model, where bilateral exports... (More)
Sanctions are one of the main policy tools used in order change behaviour of countries involved in conflicts, without using armed forces. This paper examines the possibility for a targeted country to escape the potential negative effects from sanctions by increasing trade with third countries that has not imposed sanctions. The analysis is carried out on the specific case of the sanctions against Russia that was imposed by several countries and institutions as a reaction to the Russia-Ukraine conflict regarding Crimea. The paper analyse the effects of these sanctions by empirically estimate Russian exports between the years 2007-2015. The estimations are performed with different specifications of a gravity model, where bilateral exports between Russia and the importing country is the dependent variable and variations of country specific characteristics are used as explanatory variables. The results are threefold, as Russia’s (i) overall exports to the rest of the world decrease when targeted with sanctions, (ii) exports to sanctioning countries decreased more than the rest of the world and (iii) exports to countries similar to the sanctioning countries have not decreased. (Less)
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author
Jildenbäck, Hampus LU
supervisor
organization
course
NEKP01 20171
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Sanctions Russia Ukraine Trade Diversion Diverting Export Similarity Index
language
English
id
8909571
date added to LUP
2017-07-10 14:34:56
date last changed
2017-07-10 14:34:56
@misc{8909571,
  abstract     = {Sanctions are one of the main policy tools used in order change behaviour of countries involved in conflicts, without using armed forces. This paper examines the possibility for a targeted country to escape the potential negative effects from sanctions by increasing trade with third countries that has not imposed sanctions. The analysis is carried out on the specific case of the sanctions against Russia that was imposed by several countries and institutions as a reaction to the Russia-Ukraine conflict regarding Crimea. The paper analyse the effects of these sanctions by empirically estimate Russian exports between the years 2007-2015. The estimations are performed with different specifications of a gravity model, where bilateral exports between Russia and the importing country is the dependent variable and variations of country specific characteristics are used as explanatory variables. The results are threefold, as Russia’s (i) overall exports to the rest of the world decrease when targeted with sanctions, (ii) exports to sanctioning countries decreased more than the rest of the world and (iii) exports to countries similar to the sanctioning countries have not decreased.},
  author       = {Jildenbäck, Hampus},
  keyword      = {Sanctions Russia Ukraine Trade Diversion Diverting Export Similarity Index},
  language     = {eng},
  note         = {Student Paper},
  title        = {Escaping Sanctions by Trade Diverting},
  year         = {2017},
}