Economic sanctions and agricultural trade

The article examines the impact of economic sanctions on international agricultural trade. The main objective of the study is to quantify how economic sanctions affect the trade of agricultural products. The authors also investigate the heterogeneity of the impact of sanctions based on the type of sanction, the direction of trade, and at the industry level. The study found that complete trade sanctions reduce agricultural trade by approximately 67%, which is equivalent to a tariff of 25%. Partial sanctions also have significant negative effects, although smaller, reducing trade by an average of 18%. The effect of sanctions varies considerably depending on the sanctioning and sanctioned countries, the type of sanctions, and the direction of trade flows. For example, sanctions imposed in both directions (imports and exports) have a much greater negative impact on agricultural trade compared to sanctions that affect only imports or exports. This study provides evidence that sanctions significantly harm food trade and agricultural production, affecting producers and consumers.