Worth the pain? Firms' exporting behavior to countries under sanctions
Journal: Econstor (Econstor)
Year: 2020

How do exporting firms react to sanctions? Specifically, which firms are willing - or capable - to serve the market of a sanctioned country? We investigate this question for four sanctions episodes drawing on recent econometric advances in bias-corrected dynamic high-dimensional fixed effects binary choice estimators and monthly data on the universe of French exporting firms. We find that the introduction of new sanctions significantly lowers firm-level probabilities of serving the sanctioned ma