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The Effects of Economic Sanctions on Iran's Oil and Gas Industry
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Farhad Dejpasand1   , Mehdi Yazdani2 , Ali Taghavi3 , Fazel Moridi Farimani2 |
1- Associate Professor, Faculty Member, Department of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran. , f_dejpasand@sbu.ac.ir
2- Assistant Professor, Faculty Member, Department of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran
3- Master's degree in Theoretical Economics, Department of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran |
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Abstract: (23 Views) |
| Since the Islamic Revolution in Iran, economic sanctions have consistently been one of the primary challenges. These sanctions serve as coercive economic measures against nations to alter their policies. Iran's oil and gas industry, due to its economic and technological dependence on foreign resources, has been the principal target of such sanctions. By reducing Iran's capacity to exploit its oil and gas resources, sanctions have pressured the national economy and influenced political decision-making. Foreign currency revenues from this industry constitute a significant portion of the country's annual budget, making any fluctuation in this sector impactful on the entire economy. Therefore, identifying the effects of sanctions on Iran's oil and gas industry and understanding how these sanctions influence Iran's economy through this sector is crucial for economic policymakers.The present study aims to analyze the impacts of economic sanctions on Iran's oil and gas industry. To this end, four key variables—value added, oil and gas export value, investment in the oil sector, and technology—are considered. The data used in this research are annual and cover the period from 1991 to 2021. Estimations have been conducted using a simultaneous equations system and the Two-Stage Least Squares (2SLS) method. This method is employed to estimate model parameters under conditions of simultaneous equations, ensuring more accurate and reliable results.The findings reveal that sanctions have had a significant and negative impact on Iran's oil and gas sector. Directly, they have negatively and significantly affected value added in the oil sector, oil and gas export value, and investment in the oil sector. Indirectly, sanctions have also negatively and significantly influenced technology in the industry. |
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| Keywords: Economic sanctions, oil and gas industry, value added, exports, investment, technology, production, oil revenues, simultaneous equations system. |
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Full-Text [PDF 1205 kb]
(11 Downloads)
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Type of Study: Research |
Subject:
Management
Received: 2024/11/23 | Accepted: 2024/11/30 | Published: 2025/07/1
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