Splinter, M. & Klomp, J. (2022). Do Sanctions Cause Economic Growth Collapses?

Question 1

What is the basic idea behind economic sanctions?

Answer 1

The basic idea behind economic sanctions is that it is expected that they create a major and sudden adverse economic shock.

It assumes that when this shock is large enough, and the target country cannot anticipate or mitigate the costs, the target government is more willing to accept the demands.

Question 2

What are the side effects of sanctions?

Answer 2

Sanctions also increase political uncertainty in a target country

Question 3

What are the most important findings on sanctioning?

Answer 3

1. Economic sanctions increase the likelihood of an economic growth
   deceleration by about nine percent in the three years following the first signals of a sanction.
2. It turns out that in particular,
   trade sanctions, multilateral sanctions, and sanctions aiming at the business sector are successful in creating a major
   economic shock.

Question 4

What are the type of sanctions

Answer 4

1. Trade sanctions
2. Financial Sanctions
3. Diplomatic Sanctions

Question 5

What are the most important effects of sanctions?

Answer 5

1. First,
   an economic sanction increases the likelihood of an economic growth
   deceleration by about nine percent in the three years preceding the first sanction
   signs.
2. Second, it turns out that, in particular,
   trade sanctions, multilateral sanctions,
   and sanctions aiming at the business sector cause sudden negative growth
   accelerations.