The political economy of economic sanctions and its impact on the value of oil companies' products in Iranian Stock market

Document Type : applicative

Authors

1 Shahid Beheshti University

2 Assistant Professor of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran

3 Master of Economics, Faculty of Economics and Political Science, Shahid Beheshti University, Tehran, Iran

10.30473/jier.2026.78012.1542

Abstract

In political economy literature, economic sanctions are imposed by countries or international organizations as a lever of pressure against countries with the aim of changing the behavior of the government in that country .In this regard, the dependence of many countries, especially developing countries, on a specific commodity such as natural resources and sanctions in this area will lead to a decrease in foreign exchange earnings, fluctuations in foreign exchange earnings and ultimately weakening economic performance and reducing economic resilience. Revenues from oil sales are considered one of the most important sources of export income in OPEC member countries. In Iran, a large part of foreign exchange earnings is also provided from the export of oil and oil products, which is affected by fluctuations in oil prices and economic sanctions. In this regard, fluctuations in oil revenues and instability in them will have a negative impact on economic performance, government budget deficit and economic growth. In this study, the political economy of economic sanctions and its effects on the value of production of oil companies listed on the Iranian Stock market are examined using the generalized moment method (GMM) in the period (2002-2022). The results indicate that oil revenues have had a positive and significant effect on the value of production of oil companies. Also, economic sanctions in 2012 and 2018 have had a negative effect on the value of production of oil companies through the oil revenues channel.

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History

  • Receive Date: 11 May 2026
  • Revise Date: 12 June 2026
  • Accept Date: 17 September 2026

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