Thesis
SANCTIONS, BILATERAL TRADE, AND THE EXTENSIVE MARGIN: EVIDENCE FROM THE AGRICULTURAL SECTOR
Master of Science (MS), Washington State University
2026
Abstract
At the end of the Cold War, modern sanctions emerged as a non-military means to punish or coerce foreign governments for undesirable actions. By the 2000s, countries began favoring targeted sanctions that exclude sensitive sectors like food and medicine. However, targeted sanctions can disrupt agricultural trade through indirect channels. This study examines the impact of sanctions on the extensive margin and bilateral agricultural trade flows using a two-step gravity model developed by Egger and Larch (2011). The first-stage probit model captures the extensive margin by accounting for the endogenous selection into export markets, whereas the second-stage PPML estimation captures the intensive margin. The econometric findings reveal that sanctions primarily operate through the intensive margin, reducing trade volume, rather than eliminating bilateral trade. Our findings indicate that only financial sanctions have a significant impact on the extensive margin, and, given positive trade flows, financial sanctions have a greater negative impact on trade volume than trade sanctions do.
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Details
- Title
- SANCTIONS, BILATERAL TRADE, AND THE EXTENSIVE MARGIN: EVIDENCE FROM THE AGRICULTURAL SECTOR
- Creators
- Aswin Sindhu Radhakrishnan
- Contributors
- Jeff Luckstead (Advisor)Mark Gibson (Committee Member)Thomas Marsh (Committee Member)
- Awarding Institution
- Washington State University
- Academic Unit
- School of Economic Sciences
- Theses and Dissertations
- Master of Science (MS), Washington State University
- Number of pages
- 35
- Identifiers
- 99901393806001842
- Language
- English
- Resource Type
- Thesis