Tag Archives: Sanctions

The economic determinants of Venezuela’s hunger crisis

This paper argues that Venezuela’s hunger crisis was caused by the collapse of the country’s import capacity. I show evidence supporting the hypothesis that the key driver of the decrease in caloric intake was the decline of more than nine-tenths in oil revenues, which sparked an economic contraction and forced the economy to undertake massiveContinue reading “The economic determinants of Venezuela’s hunger crisis”

Es hora de aliviar las sanciones. Cuidado cómo lo haces.

Un comentario sobre Informe del Grupo de Trabajo de Venezuela del Atlantic Council Francisco Rodríguez. Director, Petróleo por Venezuela El Atlantic Council acaba de publicar un informe, “ Exploring Oil-Finded Humanitarian Frameworks for Venezuela ”, que evalúa las propuestas de programas humanitarios financiados con petróleo para Venezuela que compiten entre sí, y establece una serieContinue reading “Es hora de aliviar las sanciones. Cuidado cómo lo haces.”

Sanctions and Oil Production: Evidence from Venezuela’s Orinoco Basin

We use the differential access to credit of oil firms in Venezuela’s Orinoco Basin to identify the economic effects of financial and oil sanctions on firm output.  Using a panel of monthly firm-level oil production from 2008-2020, we provide estimates showing that financial and oil sanctions led to large losses in oil production among firms which had access to international credit prior to sanctions.  The estimated effects explain around half of the output drop experienced in those firms since the adoption of sanctions, and argue that in the absence of sanctions, production in the Basin would be between three to five times its current level.