Sanctions and Export Deflection: Evidence from Iran. Economic Policy , 32 (90) , pp. 319–355. Publisher's VersionAbstract, 2017.
Do export sanctions cause export deflection? Data on Iranian non-oil exporters between January 2006 and June 2011 shows that two-thirds of these exports were deflected to non-sanctioning countries after sanctions were imposed in 2008, and that at this time aggregate exports actually increased. Exporting firms reduced prices and increased quantities when exporting to a new destination, however, and suffered welfare losses as a result.