the effect of us and eu economic sanctions on bilateral trade flows between iran and its major trading partners:an application of gravity model

economic sanctions appear to be a common feature of political interactions between states. economic sanctions have become increasingly important as alternative to military conflict since the last decade of twentieth century. this paper provides, through a gravity model, an estimation of the impact of economic sanctions on bilateral trade flows between iran and its major trading partners during 2000 – 2011, disaggregated by the choice of the 1 – digit sections of the standard international trade classification including zero, two, five, six and seven codes. the results show that extensive and limited sanctions have a significant and negative impact on bilateral trade, except for exports of five and seven codes.