Do Sanctions Really Constrain Iran’s Military Spending?

◢ Do sanctions reduce the military spending in Iran? Modeling the effects of sanctions on military spending in Iran demonstrates the impact of unilateral sanctions and multilateral sanctions. The models suggests that increasing intensity of sanctions dampens the military budget of Iran. But when separating unilateral and multilateral sanctions, it becomes clear that only multilateral sanctions have a statistically significant and negative impact on military spending of Iran.

How Public Investment Could Help Improve Iran’s Growth Potential

◢ Since the early 2000s, growth in Iran has been insufficient to improve real GDP per capita incomes. Sanctions and negative oil price shocks led to budget tightening and a contraction in pro-growth spending. This study examines various approaches to scaling up public investment in Iran under different oil price scenarios in order to analyze how Iran can use public investment to achieve higher growth.