This paper examines how unilateral economic sanctions affect the U.S. farm economy. A key result is that the total impact of unilateral sanctions on the U.S. economy is larger than the direct impacts on industries whose exports have been constrained (in some cases more than twice as large). Thus, while the direct burden of sanctions may fall on a narrow set of industries, the analysis reveals the extent to which the impacts spill over into other sectors of the economy, an area to date that has not received adequate attention.

Witnesses include: Rep. Bill Barrett, Larry Combest, Earl F. Hilliard, Debbie Stabenow, Charles W. Stenholm, and George E. Nethercutt, Jr.; Daniel G. Amstutz, pres. and ceo, North American Grain Export Grain Assoc., Inc.; Harry Cleberg, pres. and ceo, Farmland Industries, Inc.; Stuart Eizenstat, Under Secretary, Economics, Business, and Agricultural Affairs, U.S. Dept. of State; Dan Glickman, U.S. Dept. of Agriculture; David Hillman , v.p., Arkansas Farm Bureau Federation; Roger Pine, Nat. Corn Growers Assoc.; Wes Sims, Nat. Farmers Union; Loy Sneary, U.S. Rice Producers and U.S.A. Rice Federation; and Mike Yost, pres., American Soybean Assoc.

The objective of this paper is to examine whether economic sanctions contribute to influencing the target countries' protectionist policies in the agricultural sector. Using pooled mean group estimations in a dynamic heterogeneous panel setting, we find robust empirical evidence that, in the long-run, economic sanctions decrease agricultural protection in the target counties, and this effect is mitigated by the wealth of the target's economy. However, the relationship is insignificant in the short run. Furthermore, our results also suggest that the impact of sanctions on agricultural protection (a) increases with the severity of economic sanctions, (b) is greater for multilateral sanctions than unilateral sanctions, and (c) is more severe on agricultural protection when sanctions span a longer duration.

NSIAD-92-106 Economic Sanctions: Effectiveness as Tools of Foreign Policy

How Sanctions Work surveys theories of international sanctions and offers detailed analyses of the effect of sanctions on apartheid South Africa. Chapters by respected international experts cover cultural isolation, oil and military embargoes, trade boycotts, financial sanctions and divestment, consequences for black South Africans, and regional effects. The book shows how sanctions both directly and indirectly hurt the apartheid regime while in some cases offering succour to the anti-apartheid movement.