Economic sanctions and output growth: Empirical evidence

Abstract This paper provides evidence on the effects of sanctions on economic growth for a sample of 107 countries during 1960–2022. The main findings from our empirical investigation are as follows: in general, 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 some evidence on the negative impact of trade and financial sanctions, whereas travel and other sanctions do not affect output growth. JEL classification codes: F43, F51, F53