Trade Composition and Acquiescence to Sanction Threats

In this article, we argue that the composition of trade is an important determinant of vulnerability to sanctions. Trade composition has changed considerably over the years since World War II, with growth in intra-industry trade: the exchange of similar, often branded, commodities that follows from varied consumer preferences and economies of scale. Conversely, we see relatively less of the traditional inter-industry trade: exchange of distinct...