In a nutshell
- Different countries impose export sanctions.
- Whether these sanctions are effective depends on their goal. This policy brief highlights that, if the goal of export sanctions is to reduce total exports of the targeted country, export sanctions may be less effective as exporters can redirect their exports from one export destination to another.
- However, if the goal of export sanctions is to put pressure on exporters in the targeted country, then export sanctions can be effective as exporters incur welfare losses while deflecting exports to new destinations.
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