Department of Economics and Business Economics

The Impact of Economic Sanctions on Income Inequality of Target States

Publication: ResearchWorking paper

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In this paper, we draw on established theoretical work to analyze empirically which segments of the population in the target states bear the most cost when economic sanctions are imposed. Using a cross-country analysis of 68 target states from 1960 to 2008, we find robust empirical evidence that the imposition of sanctions have a deleterious effect on income inequality. Focusing on various sanction instruments, financial and trade sanctions were found to have different impacts on income inequality. Lastly, the adverse effect of the sanctions was more severe when sanctions span longer durations.
Original languageEnglish
Place of PublicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages28
StatePublished - 21 Mar 2016
SeriesEconomics Working Papers
Number2016-04

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