Heider Kariem (@heiderkariem.bsky.social)

Shooting down trade: Firm-level effects of embargoes The downing of a Russian SU-24 fighter jet by Turkish forces in November 2015 led to a swift embargo by Russia on Turkish goods and services, and provides a unique opportunity to study the effects of trade sanctions on firms. This column analyses the impact of the embargo using detailed administrative data covering all Turkish exporters. The results show a near-complete stop of sanctioned exports to Russia, significant shifts to other markets, and lasting effects on firms’ domestic sales, supply chains, and employment. The findings highlight how firms adapt to trade shocks and provides useful lessons for policymakers designing sanctions. https://cepr.org/voxeu/columns/shooting-down-trade-firm-level-effects-embargoes