Lifting of International Sanctions and the Shadow Economy in Iran—A View from Outer Space
With the implementation of the Joint Comprehensive Plan of Action (JCPOA) in 2016, Iran experienced a short period without international sanctions which resulted in an annual increase in the gross domestic product (GDP) in the following two years. However, it was not just the formal economy that was...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-11-01
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| Series: | Remote Sensing |
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| Online Access: | https://www.mdpi.com/2072-4292/13/22/4620 |
| _version_ | 1827675452852928512 |
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| author | Mohammad Reza Farzanegan Sven Fischer |
| author_facet | Mohammad Reza Farzanegan Sven Fischer |
| author_sort | Mohammad Reza Farzanegan |
| collection | DOAJ |
| description | With the implementation of the Joint Comprehensive Plan of Action (JCPOA) in 2016, Iran experienced a short period without international sanctions which resulted in an annual increase in the gross domestic product (GDP) in the following two years. However, it was not just the formal economy that was affected by the sanctions. Previous studies have shown that sanctions can negatively affect the shadow (or informal) economy and may even have a larger impact on the informal economy than on the formal economy. Nighttime lights (NTL) data allow us to study shadow economy activities that are not reported in the official GDP. This study uses a panel of NTL (the DMSP/OLS and VIIRS/DNB harmonized dataset) from 1992 to 2018 for 31 Iranian provinces to investigate the association between the lifting of sanctions and the growth of the shadow economy. The empirical results suggest an increase in shadow economy activity with the lifting of sanctions while controlling for other drivers of informal activities. |
| first_indexed | 2024-03-10T05:06:15Z |
| format | Article |
| id | doaj.art-9b37be8a86ba475ca3ad1d36f0e5b8a0 |
| institution | Directory Open Access Journal |
| issn | 2072-4292 |
| language | English |
| last_indexed | 2024-03-10T05:06:15Z |
| publishDate | 2021-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Remote Sensing |
| spelling | doaj.art-9b37be8a86ba475ca3ad1d36f0e5b8a02023-11-23T01:20:28ZengMDPI AGRemote Sensing2072-42922021-11-011322462010.3390/rs13224620Lifting of International Sanctions and the Shadow Economy in Iran—A View from Outer SpaceMohammad Reza Farzanegan0Sven Fischer1Economics of the Middle East Research Group, Center for Near and Middle Eastern Studies (CNMS), School of Business and Economics, Philipps-Universität Marburg, 35032 Marburg, GermanyEconomics of the Middle East Research Group, Center for Near and Middle Eastern Studies (CNMS), School of Business and Economics, Philipps-Universität Marburg, 35032 Marburg, GermanyWith the implementation of the Joint Comprehensive Plan of Action (JCPOA) in 2016, Iran experienced a short period without international sanctions which resulted in an annual increase in the gross domestic product (GDP) in the following two years. However, it was not just the formal economy that was affected by the sanctions. Previous studies have shown that sanctions can negatively affect the shadow (or informal) economy and may even have a larger impact on the informal economy than on the formal economy. Nighttime lights (NTL) data allow us to study shadow economy activities that are not reported in the official GDP. This study uses a panel of NTL (the DMSP/OLS and VIIRS/DNB harmonized dataset) from 1992 to 2018 for 31 Iranian provinces to investigate the association between the lifting of sanctions and the growth of the shadow economy. The empirical results suggest an increase in shadow economy activity with the lifting of sanctions while controlling for other drivers of informal activities.https://www.mdpi.com/2072-4292/13/22/4620shadow economyIransanctionsJCPOAnighttime lights |
| spellingShingle | Mohammad Reza Farzanegan Sven Fischer Lifting of International Sanctions and the Shadow Economy in Iran—A View from Outer Space Remote Sensing shadow economy Iran sanctions JCPOA nighttime lights |
| title | Lifting of International Sanctions and the Shadow Economy in Iran—A View from Outer Space |
| title_full | Lifting of International Sanctions and the Shadow Economy in Iran—A View from Outer Space |
| title_fullStr | Lifting of International Sanctions and the Shadow Economy in Iran—A View from Outer Space |
| title_full_unstemmed | Lifting of International Sanctions and the Shadow Economy in Iran—A View from Outer Space |
| title_short | Lifting of International Sanctions and the Shadow Economy in Iran—A View from Outer Space |
| title_sort | lifting of international sanctions and the shadow economy in iran a view from outer space |
| topic | shadow economy Iran sanctions JCPOA nighttime lights |
| url | https://www.mdpi.com/2072-4292/13/22/4620 |
| work_keys_str_mv | AT mohammadrezafarzanegan liftingofinternationalsanctionsandtheshadoweconomyiniranaviewfromouterspace AT svenfischer liftingofinternationalsanctionsandtheshadoweconomyiniranaviewfromouterspace |