Technological sanctions, research capacity, and unintended consequences
Journal
International Review of Economics & Finance
Journal Volume
98
Start Page
103942
ISSN
1059-0560
Date Issued
2025-03
Author(s)
DOI
10.1016/j.iref.2025.103942
Abstract
This study examines the impact of technological sanctions on global competition, highlighting that their outcomes depend significantly on the research capacities of the targeted countries. Strong research capacities can enable these countries to foster the emergence of high-productivity firms in response to sanctions, which may instead act as a catalyst to boost the sanctioned country's aggregate productivity. As a result, technological sanctions might unexpectedly narrow the productivity gaps between the sanctioning and sanctioned countries. Conversely, while countries with robust research capacities demonstrate greater resilience to sanctions, those lacking such capacities are likely to experience widened productivity gaps following sanctions.
Subjects
International trade
Technology diffusion
Technology sanction
Publisher
Elsevier BV
Type
journal article