Work

From Russia with love: International risk-sharing, sanctions, and firm investments

Year: 2024

Type: article

Abstract: We propose a novel explanation for why sanctions on Russian firms might not work as intended: these firms' ability to diversify sanction risks via partner countries friendly with Russia. Using indirect links with partner firms as a plausibly exogenous proxy for this risk-sharing channel, we show that exposed Russian firms were able to leverage these links to alleviate the negative impacts of sanctions in 2014.

Source: Economics Letters

DOI: 10.1016/j.econlet.2024.112005

Authors: Kiet Tuan Duong, Luu Duc Toan Huynh, Anh Dang Bao Phan, Nam T. Vu

Institutions: University of York, Queen Mary University of London, University of Liverpool, Miami University

Language: English

Topic: Economic Sanctions and International Relations

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,980