Abstract
Evidence suggests that firms frequently over-comply with U.S. sanctions—a process also known as “de-risking.” We argue that U.S. enforcement of its economic sanctions has contributed to this phenomenon to the extent that we can observe a systematic relationship between U.S. sanctions enforcement and third-party trade with U.S. sanction targets. Specifically, we theorize that, the greater the frequency and severity of sanctions enforcement penalties imposed by the U.S. against sanctions violators, the more third-party trade with U.S. sanction targets will decline. Analyzing data from 2003 to 2015, we find that U.S. sanctions enforcement actions correlate with significant declines in dyadic trade between third-party states and U.S. sanctions targets, even when enforcement actions target parties external to that dyad. This suggests that the U.S.’s enforcement of its sanctions magnifies the harm that U.S. sanctions inflict on target economies.
Original language | English (US) |
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Pages (from-to) | 2048-2075 |
Number of pages | 28 |
Journal | Journal of Conflict Resolution |
Volume | 68 |
Issue number | 10 |
DOIs | |
State | Published - Nov 2024 |
Keywords
- OFAC
- de-risking
- economic sanctions
- foreign policy
- sanctions enforcement
- trade
ASJC Scopus subject areas
- General Business, Management and Accounting
- Sociology and Political Science
- Political Science and International Relations
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Dive into the research topics of 'The Enforcement of U.S. Economic Sanctions and Global De-risking Behavior'. Together they form a unique fingerprint.Datasets
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Supplemental Material - The Enforcement of U.S. Economic Sanctions and Global De-risking Behavior
Early, B. R. (Creator) & Peterson, T. M. (Creator), SAGE Journals, 2023
DOI: 10.25384/sage.24627961, https://sage.figshare.com/articles/dataset/Supplemental_Material_-_The_Enforcement_of_U_S_Economic_Sanctions_and_Global_De-risking_Behavior/24627961
Dataset
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Supplemental Material - The Enforcement of U.S. Economic Sanctions and Global De-risking Behavior
Early, B. R. (Creator) & Peterson, T. M. (Creator), SAGE Journals, 2023
DOI: 10.25384/sage.24627961.v1, https://sage.figshare.com/articles/dataset/Supplemental_Material_-_The_Enforcement_of_U_S_Economic_Sanctions_and_Global_De-risking_Behavior/24627961/1
Dataset
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Supplemental Material - The Enforcement of U.S. Economic Sanctions and Global De-risking Behavior
Early, B. R. (Creator) & Peterson, T. M. (Creator), SAGE Journals, 2023
DOI: 10.25384/sage.24627961, https://sage.figshare.com/articles/dataset/Supplemental_Material_-_The_Enforcement_of_U_S_Economic_Sanctions_and_Global_De-risking_Behavior/24627961
Dataset