How Unilateral Economic Sanctions Affect the Farm Economy: An Inter-Industry Analysis

Abstract

This paper examines how unilateral economic sanctions affect the U.S. farm economy. A key result is that the total impact of unilateral sanctions on the U.S. economy is larger than the direct impacts on industries whose exports have been constrained (in some cases more than twice as large). Thus, while the direct burden of sanctions may fall on a narrow set of industries, the analysis reveals the extent to which the impacts spill over into other sectors of the economy, an area to date that has not received adequate attention.