Sanctions and the Shadow Economy: Empirical Evidence from Iranian Provinces

MAGKS Joint Discussion Paper No. 07-2018

10 Pages Posted: 27 Jun 2018

See all articles by Mohammad Reza Farzanegan

Mohammad Reza Farzanegan

University of Marburg - Center for Near and Middle Eastern Studies (CNMS)

Bernd Hayo

University of Marburg - School of Business & Economics

Date Written: February 7, 2018

Abstract

Using Iranian-province-level data from 2001–2013, this study finds that the international sanctions of 2012/2013 had a significantly stronger negative impact on the growth rate of the shadow economy than they did on the official GDP growth rate. Thus, the international sanctions on Iran have damaged the informal economy even more than the formal economy.

Keywords: Shadow Economy, Sanctions, Iran

JEL Classification: F51, E26, O17

Suggested Citation

Farzanegan, Mohammad Reza and Hayo, Bernd, Sanctions and the Shadow Economy: Empirical Evidence from Iranian Provinces (February 7, 2018). MAGKS Joint Discussion Paper No. 07-2018. Available at SSRN: https://ssrn.com/abstract=3199718 or http://dx.doi.org/10.2139/ssrn.3199718

Mohammad Reza Farzanegan

University of Marburg - Center for Near and Middle Eastern Studies (CNMS) ( email )

Deutschhausstraße 12
Marburg, 35037
Germany

HOME PAGE: http://www.uni-marburg.de/cnms/wirtschaft

Bernd Hayo (Contact Author)

University of Marburg - School of Business & Economics ( email )

Universitaetsstr. 24
Marburg, D-35032
Germany
++49(0)6421-28-23091 (Phone)
++49(0)6421-28-23193 (Fax)

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