Analyzing the impact of sanctions against Iran

The main objective of this paper is to investigate this issue whether the sanctions, as claimed, have significant impacts on the economy of Iran? To achieve this aim, the paper is classified into three main sections; first section investigates the theoretical principles of sanctions including the concept, objectives and performance; the second section studies the imposed sanctions against Iran and their provisions are analyzed; finally, the third section reviews the effects of sanctions on the macro-economic variables of Iran within the vector autoregressive model (VAR). The results indicate that an increase in the interest rate can enhance the foreign direct investment rate. Furthermore, the dummy variable coefficient is negative which means that the foreign direct investment rate is reduced by imposing the sanctions in a year. Furthermore, the Gross Domestic Product (GDP) will have the negative growth in the current period by enhancing the growth of foreign direct investment rate in the previous period. Moreover, the interest rate has a positive coefficient meaning that an increase in the interest rates will lead to the GDP growth.