Publication Date
Financial Markets Group Discussion Papers DP 913
A burgeoning economics and political science literature studies the effects of economic sanctions on various aspects of economic and social life of the targeted countries. We use a comprehensive dataset of economic sanctions over the past 30 years to show that sanctions targeting of countries is only effective when the goal of such targeting is well-measured. For example, sanctions that target countries in an attempt to prevent or end wars are shown to have a significant deterrent effect; as do sanctions that target terrorism. In contrast, sanctions that target human rights violations, democratic stability, regulatory quality or attempt to destabilize noxious regimes tend to fail in achieving their stated goals.
