Topic: "Political Economy of Sanctions - Evidence from Russia"
Sanctions are a foreign policy instrument applied in order to change certain actions and decisions of the target country. They result in economic and political consequences. Nevertheless, the effectiveness of sanctions is still debatable. Thus, the aim of my research is to reveal the impact of sanctions, if there is one, within three chosen aspects: stock prices, regional economies and intergovernmental transfers. In this paper I intend to check whether the companies with state participation in the ownership are more responsive to the situation of high sanctions’ risk. The research is conducted utilizing the identification strategy based on the conflict fatalities that increase risk of sanctions and event study analysis applied to stock market returns for firms differently affected that have been successfully applied in the conflict literature, yet have not been employed in relation to sanctions’ studies.