Culture as Collateral Damage? Evidence From the Impact of Sanctions on Cultural Trade

THE WORLD ECONOMY, ss.1-19, 2025 (SSCI)

We examine how various types of sanctions—trade, financial, military, arms and travel—affect trade in cultural goods, and, for

comparison, in non- cultural goods. We find that trade sanctions have significant negative impacts on cultural and non- cultural

trade. The magnitude and nature of these impacts vary depending on the type and coverage of trade sanctions. Furthermore, our

study reveals significant collateral damage to bilateral cultural trade caused by arms, military assistance, financial and travel

sanctions. Conversely, non- cultural trade is primarily influenced by financial and travel sanctions. Examining the origins of

sanctions provides deeper insights into their diverse impacts. Specifically, our analysis highlights that the United States (U.S.)-imposed

sanctions across various types have significant unintended consequences for bilateral U.S. cultural trade with sanc-

tioned countries. Similarly, both U.S. and European Union (EU) sanctions, regardless of their type, exert a substantial impact on

their non- cultural trade with sanctioned countries. Although sanctions may be justified from a political standpoint, our findings

underscore the importance for policymakers to prioritise the promotion of cultural trade and its potential role in peacebuilding

efforts once sanctions are lifted.