Global economic sanctions and export survival: Evidence from cross-country data

Objective: The aim of the article is to study the relationship between global economic sanctions and export survival. We also investigate the moderating roles of international linkages in the nexus of sanctions and export survival. Research Design & Methods: While we employ the new data base of the Global Sanctions Data Base introduced by Felbermayr et-al. (2020), export survival rate is defined as the ratio of the number of survivors to the entrants. We apply the structural gravity model combining the dyad panel dataset of 66 countries during the 1997-2014 period. Findings: We find the adverse effects of global economic sanctions on export survival. The marginal effects of sanctions become more sizable if there is a longer distance between the sender and the target country. By contrast, the adverse effects of global sanctions can be alleviated if the target country participates in global value chains or global bank linkages. Implications & Recommendations: The findings of our study provide vital insights to help policy makers to improve the export performance of countries facing global sanctions. Contribution & Value Added: This article is the first to investigate the effects of economic sanctions on export survival. The moderating roles of international linkages in this nexus are described in this study.