Investigating the Impact of Economic Sanctions on Iran- Ghana trade

Ghaffary Fard, Mohammad; Habibi, Alireza; Kwashie, Jessica

doi:10.22034/oajre.2023.173430

Investigating the Impact of Economic Sanctions on Iran- Ghana trade

Document Type : Original Article

Authors

¹ Assistant professor, Department of Economic, Ahlul-Bayt International University, Tehran, Iran.

² Assistant professor, Department of International Business Management, Ahlul-Bayt International University, Tehran, Iran.

³ MSc Student, Department of International Business Management, Ahlul-Bayt International University, Tehran, Iran.

10.22034/oajre.2023.173430

Abstract

One of the most important factors influencing trade with Iran has always been economic sanctions imposed on the Iranian economy with ups and downs over the last 40 years. Economic sanctions against Iran that began in 1979, mainly imposed by the United States, have restricted and hindered many trade-related cross-border economic activities such as maritime transactions. banking, and insurance. The research is a quantitative design that use gravity model and FMOLS estimation to investigate the impact of economic sanctions on the Iran – Ghana trade. A further investigation is done on the effect of GDP, Trade Agreement on the bilateral trade. This helps in the understanding and contributes to literature on the bilateral trade between Iran and Ghana. It gives an insight on areas to focus in developing the trade between both countries. The results of the research shows that the bilateral trade between Iran and Ghana is positively correlated to GDP by 3.48%. However, it is negatively correlated to economic sanctions, and trade agreement by 1.66%, and 1.26% respectively.

Keywords