Coercive Diplomacy and Foreign Supply of Essential Goods: Effects of Trade Restrictions and Foreign Aid Suspension on Food Imports

Economic sanctions constrain targets’ capacity to maintain essential goods imports from foreign suppliers. This research points out that target states may respond to this adverse effect of sanctions by redirecting the resources invested to secondary goods imports to essential goods imports. In addition, I suggest that the availability of this strategy significantly varies across sanctions instruments. When facing foreign aid sanctions, targets may be able to effectively reallocate their import funding to sustain foreign supply of essential items. However, when they are subject to trade sanctions, such a response is not readily available. In the data analysis with 150 countries from 1974 to 2006, I utilize foodstuffs as a proxy of essential goods and provide evidence that targets under foreign aid sanctions transfer their import funding to maintain adequate amount of food aid. Yet, I find no evidence that targets subject to trade sanctions also respond with the same manner.