Economic sanctions and their effects on the digital economy: a comparative study (Iraq and Iran as examples)

Abstract

The impact of economic sanctions on the digital economy in both Iraq and Iran is of great importance at the present time. Although both countries face similar challenges, the nature and effects of these sanctions differ significantly between them. This study aims to compare the impact of economic sanctions on the digital economy in both Iraq and Iran, and to analyze these effects on the digital sector and on the macroeconomic indicators in the two countries. The research relied on the deductive approach through the descriptive analytical method. In the case of Iraq, the sanctions imposed on the digital sector come mainly from the United States of America. In contrast, Iran faces more comprehensive sanctions from a variety of international parties, which extend to the banking, commercial and technology sectors alike, which has led to greater challenges in the growth and development of the Iranian digital economy. The results of the study showed that the economic sanctions imposed on Iraq and Iran have significantly affected the digital economy sector in the two countries, as the digital economy sector witnessed a decline in growth and investment rates, with a decline in indicators of e-commerce and digital financial services. The sanctions also led to an increase in unemployment rates in this sector. Despite these challenges, both countries have made great efforts to adapt to these sanctions and maintain the sustainability of the digital economy, but the success of these efforts remains subject to debate as the sanctions continue to impact this vital sector.