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Economic sanctions can vary from [[trade barriers]], [[Tariff|tariffs]], and restrictions on [[financial transactions]]. These types of sanctions impose import duties on goods or bans on the export of certain goods to the target country, to a full naval [[blockade]] of the target's ports in an effort to block imported goods. The objective of the sanctioning country are to impose significant costs to the target country to coerce a change in policy or attain a specific action from the target government.<ref>{{Cite web |date=2011-08-07 |title=Sanctions/Embargoes |url=http://www.creativeassociatesinternational.com/CAIIStaff/Dashboard_GIROAdminCAIIStaff/Dashboard_CAIIAdminDatabase/resources/ghai/toolbox11.htm |archive-url=https://web.archive.org/web/20110807131747/http://www.creativeassociatesinternational.com/CAIIStaff/Dashboard_GIROAdminCAIIStaff/Dashboard_CAIIAdminDatabase/resources/ghai/toolbox11.htm |archive-date=2011-08-07 |access-date=2022-08-29 |website=}}</ref> However, the effectiveness of economic sanctions has been challenged, as its harsh impacts cause more harm to the general population rather than the target regimes it is designed to hurt.<ref>{{Cite book |last1=Hufbauer |first1=Gary Clyde |url=https://books.google.com/books?id=g-uzlJDD7DwC |title=Economic Sanctions Reconsidered |last2=Schott |first2=Jeffrey J. |last3=Elliott |first3=Kimberly |publisher=Peterson Institute for International Economics |year=2007 |location=Washington |pages=1 |isbn=9780881325362 |language=en}}</ref>
—Financial sanction and Capital Inflow and Outflow—–
A look at the sanction's laws imposed on Iran for investment in the oil and gas industry, and the difference between the implementation of the sanction's laws for Iran and Libya (ILSA) and (SISADA), show the impediments of these sanctions for investment in Iran. The ILSA Act, also known as Damato Act, prohibits any extraterritorial investment or combination of investments in Iran's oil and gas industry in excess of $ 40 million over a year. In addition, the U.S. president implemented
at least two sanctions in a list of six sanctions imposed on foreign companies violating the law. The signing of the law by the U.S. president led to strong protests by European governments against the extraterritorial application of U.S. government laws. Finally, by filing a lawsuit against the U.S. by the European countries in the W.T.O. Dispute Settlement Body, the U.S. administration agreed to exempt European companies (Razavi & Zeynodini, 2018). The importance of the issue is that capital is an input for production and economic growth. Thus it is expected that financial sanctions adversely affect on capital inflow and production. Moreover, the development of a risky environment, encourages capital outflow. The necessity of this research is that Iran witnessed the decline of capital inflow and the increase of capital outflow after the imposition of financial sanctions.<ref></ref>Heydarian S, Pahlavani M, Mirjalili S H. The Impact of Financial Sanctions on Capital Inflow and Outflow (case of Iran). J. Mon. Ec. 2022; 17 (1) :67-88
In 2013, Iran attracted 3 billion and 50 million dollars of foreign investment. In 2013, foreign investment in Iran decreased comparing to the previous year. While from 2010 to 2012, the amount of foreign investment was increasing in Iran. It was $2.983 billion foreign investment in 2009 and then increased from $ 3.649 billion in 2010, $ 4.277 billion in 2011, and about $ 4 billion in 2012. The decline in Iran's foreign capital inflows in 2014 coupled with the outflow of capital from Iran which quadrupled in the same year compared to the previous year (UNCTAD, 2015). In 2012, by the intensification of sanctions, Iran lost billions of dollars of investment in that sector, as international companies withdrew from some of Iran's projects and refused to invest more or sold it to other companies. Therefore, Iran relied on local and Asian companies to develop its oil fields (UNCTAD, 2015).
===Diplomatic sanctions===
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