The effect of economic sanctions on per capita GDP in the Iranian economy using the Synthetic control method

In this paper, we use the Synthetic control method to assess the impact of economic sanctions imposed by the United States on Iran's per capita GDP during 1990 to 2020. The US economic sanctions against the Iranian economy during this period has had a huge negative impact on the economy of Iran. Using the Synthetic control method, the economic cost of sanctions has been estimated in terms of per capita GDP. The results show that the effects of sanctions on the economy would be a significant reduction in per capita GDP by 33% in comparision with the lack of sanctions position. After intensifying santions in the Trump administration, negative effect has reached to 44% reduction in per capita GDP in 2020. Definitly, this reduction of per capita GDP will deccrease the walfare of Iranians in the long-run.