Estimating the Impact of Economic Sanctions on Employment in the Service Sector

The service sector is one of the most important sectors of the economy, accounting for a high percentage of GDP. Two-thirds of economic activity is devoted to services. The growing growth in the service sector is faster than that of the commodity trade, and in addition, the largest workforce is employed in the sector, accounting for 48 percent of Iranchr('39')s total employment. Services constitute an important part of the world economy, especially developing countries. The first step of this study was to investigate the effect of economic sanctions on economic modeling by employing a new index factor analysis for economic modeling. The method of the system of simultaneous equations has been studied during 1977-2017. The results indicate that economic sanctions have had a negative effect on employment in the service sector by slowing economic growth in the service sector.