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14 years later: The spread of drug crime in Mexico

Author

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  • Nicolas Corona Juarez

    (Universidad de las Americas Puebla)

Abstract

Over the past five years public security in Mexico started to become one of the first problems for civil society and authorities. Analysts have warned that insecurity is spreading to regions that were previously unaffected. Applying spatial econometrics techniques, this paper empirically investigates whether and how drug related crime in a given Mexican state spreads to its neighboring states. Using a panel data set for the 31 Mexican federal states and Mexico City over the period 1997-2010 the papers finds a positive and significant diffusion effect of crimes related to drugs after controlling for political and socio-economic characteristics of regions. These findings take into account the endogeneity inherent to the spatial autoregression implementing a 2SLS estimation procedure and are robust to the selection of the spatial lag weighting matrix. Furthermore, after controlling for drug enforcement in neighboring states to state i, the results show weak evidence for a deterrent effect. This implies that authorities' deterrence measures in neighboring states to state i weakly reduce drug crimes in state i.

Suggested Citation

  • Nicolas Corona Juarez, 2014. "14 years later: The spread of drug crime in Mexico," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 11(2), pages 7-40, Julio-Dic.
    • Handle: RePEc:qua:journl:v:11:y:2014:i:2:p:7-40
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    More about this item

    Keywords

    Drug Crimes; Mexico; Spatial Econometrics; Panel Data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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