Document Type : Original Article

Authors

1 PhD Student in Monetary Economics, Department of Economics, Faculty of Economics and Management, Tabriz University, Tabriz, Iran

2 PhD Student in Islamic Economics, Department of Economics, Faculty of Economics and Management, Tabriz University, Tabriz, Iran

3 Associate Professor in Economics, Department of Economics, Faculty of Economics and Management, Tabriz University, Tabriz, Iran

4 PhD Student in Econometrics, Department of Economics, Faculty of Social Sciences, Economics and Entrepreneurship, Razi University, Kermanshah, Iran

https://doi.org/10.34785/J025.2022.028

Abstract

Due to extensive sanctions against Iran, in this study the economic effects of trade sanctions was investigated. Accordingly, after reviewing the thematic literature and studies conducted in this regard, using the statistical information of the Central Bank's 2016 statistical output data table and the computable general equilibrium method, the price and production effects of Iran's export and import sanctions were investigated.

The results obtained using GAMS 34 software in the form of two research scenarios show that the import embargo has more severe economic effects than the export embargo on the economy. In the import embargo economic growth will reduce, respectively 6.72 and 9.87 percent and general level of production prices will increase 23.6 and 29.46 percent in the first and second scenarios. Export ban reduces economic growth of 2.05 and 4.55 and price levels 2.03 and 4.5 percent during the first two scenarios. The important point in this discussion, to reduce the general level of prices in the export ban, which is consistent with the theoretical analysis.

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Main Subjects

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