The role of economic sanctions in trade between Iran and Afghanistan

In the present era, due to the development of transportation system and communication technology, the economies and trade of countries are intertwined. This highlights the vital importance of foreign trade as the main lever for economic growth and development. Meanwhile, trade between Iran and Afghanistan due to its proximity and high potential for trade and economic cooperation doubles the importance of the issue. But the imposition of economic sanctions on Iran poses a variety of obstacles and restrictions on trade between the two countries. Therefore, in this study, the effect of economic sanctions on trade between Iran and Afghanistan during the years (2001-2009) has been studied and analyzed by Eviews10, using a Fully Modified Ordinary Least Square method. Economic sanctions have entered the model in the form of a dummy variable. The findings show that the imposition of any economic sanctions has led to an increase in long-term trade between Iran and Afghanistan. Therefore, the two countries should consider the necessary strategies to reduce the effect of sanctions.