The Impact of UN and US Economic Sanctions on GDP Growth

Arbeitspapier

In this paper, we empirically assess how economic sanctions imposed by the UN and the US affect the target states' GDP growth. Our sample includes 68 countries and covers the period 1976-2012. We find, first, that sanctions imposed by the UN have a statistically and economically significant influence on economic growth. On average, the imposition of UN sanctions decreases the target state's real per capita GDP growth rate by 2.3-3.5 percentage points (pp). These adverse effects last for a period of 10 years. Comprehensive UN economic sanctions, that is, embargoes affecting nearly all economic activity, trigger a reduction in GDP growth by more than 5 pp. Second, the effect of US sanctions is much smaller and less distinct. The imposition of US sanctions decreases GDP growth in the target state over a period of 7 years and, on average, by 0.5-0.9 pp.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FIW Working Paper ; No. 138

Classification and Topics

• Classification: Wirtschaft ; Economic Growth of Open Economies ; International Conflicts; Negotiations; Sanctions ; National Security; Economic Nationalism ; International Agreements and Observance; International Organizations
• Subject: Economic growth ; economic sanctions ; United Nations ; United States

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Neuenkirch, Matthias ; Neumeier, Florian
• Event: Veröffentlichung
• (who): FIW - Research Centre International Economics
• (where): Vienna
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/121131
• Last update: 10.03.2025, 11:41 AM CET