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From maize to haze: agricultural shocks and growth of the mexican drug sector

dc.contributor.authorDube, Oeindrilaes
dc.contributor.authorGarcía-Ponte, Omares
dc.contributor.authorThom, Kevines
dc.coverage.spatialMéxicoes
dc.date.accessioned2014-10-15T20:04:17Z
dc.date.available2014-10-15T20:04:17Z
dc.date.issued2013es
dc.identifier.citationDube, O., García-Ponte, O., & Thom, K. (2013). From maize to haze: agricultural shocks and growth of the mexican drug sector. CAF Working paper, 2013/09, Caracas: CAF. Retrieved from https://scioteca.caf.com/handle/123456789/254en_GB
dc.identifier.urihttps://scioteca.caf.com/handle/123456789/254
dc.description.tableofcontentsWe examine how commodity price shocks experienced by rural producers affect the drug trade in Mexico. Our analysis exploits exogenous movements in the Mexican maize price stemming from weather conditions in U.S. maize-growing regions, as well as export flows of other major maize producers. Using data on over 2200 municipios spanning 1990- 2010, we show that lower prices differentially increased the cultivation of both marijuana and opium poppies in municipios more climatically suited to growing maize. This increase was accompanied by differentially lower rural wages, suggesting that households planted more drug crops in response to the decreased income generating potential of maize farming. We also find impacts on downstream drug-trade outcomes, including the operations of drug cartels and killings perpetrated by these criminal groups. Our findings demonstrate that maize price changes contributed to the burgeoning drug trade in Mexico, and point to the violent consequences of an expanding drug sector.en_US
dc.language.isoenges
dc.publisherCAFes
dc.relation.ispartofseriesCAF Working paper, 2013/09es
dc.rightsCC-BY-NCes_ES
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/es_ES
dc.subjectDesarrollo rurales
dc.subjectEconomíaes
dc.subjectTransformación productivaes
dc.subjectAgriculturaes
dc.subjectInvestigación socioeconómicaes
dc.subjectSeguridades
dc.titleFrom maize to haze: agricultural shocks and growth of the mexican drug sectores
dc.typeworkingPaperes
dc.publisher.cityCaracases


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