Construction a Monthly Index for Sanctions Against Iran

Document Type : Original Article

Author

Associate Professor of Economics, Shahid Beheshti University

Abstract

In recent years, economic sanctions have been discussed as one of the most important issues of the day in Iranian scientific forums. Given the different effects of sanctions on countries' trade and economic relations, it is important to address this issue from different angles.
The purpose of this article is to construct a monthly index of sanctions against Iran in order to reflect the percentage of impact of the risks of sanctions imposed on the Iranian economy during the years 1978-2020.This index is made taking into account all the sanctions imposed and in terms of the weight of the importance of each sanctions, which is calculated based on the origin and nature of sanctions, assuming that the sanctions imposed by different institutions are independent.
The results show that the index is highly correlated with the variables affected by sanctions in the Iranian economy, including oil production and exports, exchange rates and GDP, and can describe changes in these variables.

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References

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Economic Strategy
Volume 10, Issue 38 - Serial Number 38
November 2021
Pages 565-593

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