The Unintended Consequences of US-led Sanctions on Iranian Industries

Abstract

This paper aims to understand the consequences of US-led sanctions on two important industries in Iran: the oil and gas industry and power plant construction. Using qualitative methods and providing empirical evidence, this paper demonstrates the shortcomings of the pro-sanctions argument in the Iranian context. This paper argues that pro-sanctions literature is more inclined towards American politics; it ignores socially recurring effects such as empowering self-reliance in the target country. In the Iranian context, while sanctions regimes are beyond the control or power of industry managers, they have acted as a double-edged sword. On one hand, the sanctions have imposed extra costs on domestic companies in acquiring technological knowledge. On the other hand, they have stimulated policy-makers' determination and empowered a self-reliance doctrine amongst them.