The use of sanctions has grown steadily over the past seven decades, with well-documented effects on bilateral trade. This column analyses the effects of sanctions on cross-border mergers and acquisitions from sanctioning to target countries over the period 2006-2023. It finds that sanctions reduce the number of deals by around 50%, with stronger effects as time passes. The impact is stronger in the mining, manufacturing, and energy sector than in the services sector. The results reinforce the broad-based potential effects of sanctions on private sector economic activity.Read More
