Extraterritorial trade sanctions: Theory and application to the US–Iran–EU conflict
نویسندگان
چکیده
Under extraterritorial sanctions the sanctioning country extends its policies to trade of third countries with sanctioned country. An example is President Trump's decision in 2018 leave Joint Comprehensive Plan Action (JCPOA), a multilateral agreement Iran. In this article, I develop game-theoretic model explain emergence sanctions. Such (i) do not arise when harmful activity (“build nuclear bomb”) verifiable even if monetary transfers are ruled out, but (ii) emerge second (“sponsor international terrorism”) verifiable, and differ their gains from country, harm non-verifiable activity, cost abandoning economic order. context US–Iran–EU conflict, argue that oil gas fracking boom US together former ignorance his reputation key factors
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ژورنال
عنوان ژورنال: Review of International Economics
سال: 2023
ISSN: ['0965-7576', '1467-9396']
DOI: https://doi.org/10.1111/roie.12682