Sanctions and the Shadow Economy: Empirical Evidence from Iranian Provinces
MAGKS Joint Discussion Paper No. 07-2018
10 Pages Posted: 27 Jun 2018
Date Written: February 7, 2018
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: Suggested Citation