Connections and Sanctions Participation

Regarding the question “Why do sanctions fail?” the majority of sanctions studies take the perspective of the target countries or the interactions between the dyadic countries involved, but the sender countries’ impact on sanctions’ effectiveness is largely neglected. This dissertation looks at the domestic economic actors, i.e., enterprises and consumers, of the sender countries. By answering “Who participates in economic sanctions?” this dissertation assesses one factor potentially influencing the sanctions’ effectiveness: the sanctions participation and evasion inside the sender countries. More precisely speaking, this dissertation applies the factor of the political connections economic actors have with their governments to explain their participation in or circumvention from sanctions imposed by their own countries. This dissertation consists of three independent empirical papers, respectively. The first looks at the anti-Japanese consumer boycotts in China 2012, the second at the trade controls by companies inside mainland China targeting Taiwan in 2002, and the third, the Steel and Aluminum Tariffs imposed by the US since 2018. Generally speaking, the papers find that strong political connections in China promote sanctions participation, reflected via the larger transaction reduction by organizational consumers and State-Owned Enterprises, yet facilitate sanctions evasion in the US, reflected by the larger chance for tariff exemptions for companies with more political importance and monetary investment to the governments. Dissertation findings reveal the effect of connections on sanctions, and at the same time show how divergent institutions make one variable function in the opposite way.