The impact of economic resilience and natural resource abundance on the performance of financial sanctions in selected developing countries.

Document Type : Original Article

Authors

1 PhD student in International Economics, Department of Economics and Management, Semnan University

2 Associate Professor of Economics, Department of Economics, Faculty of Economic and Administrative Sciences, Semnan University, Semnan, Iran

3 Professor of Economics, Department of Economics, Faculty of Economic and Administrative Sciences, Semnan University, Semnan, Iran.

Abstract

Sanctions affect the economic performance of the target countries. In this connection, the economic resilience and the benefit of natural resources of the countries under sanctions can moderate the effect of sanctions. In this study, the effect of economic resilience and natural resource abundance on the performance of sanctions in 70 selected countries over the period 1970-2022 has been examined using a logit-probit panel approach. The results of estimating different models show that, first, economic resilience has a negative and significant effect on sanctions performance. Accordingly, countries with greater economic capability are more likely to be able to overcome the negative effects of sanctions. Secondly, the abundance of natural resources has a positive and significant effect on the performance of sanctions, Third, the interaction effect of economic resilience and natural resource abundance on sanctions performance is positive, such that natural resource abundance reduces the negative (reducing) effect of resilience on sanctions performance. Within the framework of the results, it can be predicted that improving economic resilience and countries' access to natural resources can affect the effects of sanctions in target countries.

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History

  • Receive Date: 20 November 2024
  • Revise Date: 21 January 2025
  • Accept Date: 22 January 2025
  • Publish Date: 21 March 2025

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