Investigating the Impact of Economic Sanctions on Iran-Nigeria Bilateral Trade (2012-2022)

Document Type : Research Paper

Authors

1 allame tabatabaei university

2 ahlul bayt international university

Abstract

This study employs a quantitative approach, utilizing the gravity model and FMOLS estimation, to examine how economic sanctions affect the trade relationship between Iran and Nigeria. Additionally, it explores the influence of factors such as GDP, exchange rate, strong sanctions, and weak sanctions. By doing so, this research contributes to the existing knowledge on bilateral trade between these two nations and provides valuable insights into areas that require attention for fostering trade development between them. The research findings reveal that in the bilateral trade relationship between Iran and Nigeria, there exists a positive correlation between GDP and weak sanctions (LIM) with trade. An increase of 1% in GDP leads to a 7.79% increase in trade, while a 1% increase in weak sanctions contributes to a 3.91% increase in trade. Conversely, strong sanctions and exchange rate have a negative impact on trade, with a 1% increment in strong sanctions resulting in a 1.18% decrease in trade, and a 1% increment in exchange rate leading to a 1.96% decrease in trade.

Keywords

References

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