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Profits and Violence in Illegal Markets: Evidence from Venezuela

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  • Dorothy Kronick

Abstract

Some theories predict that profits facilitate peace in illegal markets, while others predict that profits fuel violence. I provide empirical evidence from drug trafficking in Venezuela. Using original data, I compare lethal violence trends in municipalities near a major trafficking route to trends elsewhere, both before and after counternarcotics policy in neighboring Colombia increased the use of Venezuelan transport routes. For thirty years prior to this policy change, lethal violence trends were similar; afterward, outcomes diverged: violence increased more along the trafficking route than elsewhere. Together with qualitative accounts, these findings illuminate the conditions under which profits fuel violence in illegal markets.

Suggested Citation

  • Dorothy Kronick, 2020. "Profits and Violence in Illegal Markets: Evidence from Venezuela," Journal of Conflict Resolution, Peace Science Society (International), vol. 64(7-8), pages 1499-1523, August.
    • Handle: RePEc:sae:jocore:v:64:y:2020:i:7-8:p:1499-1523
    DOI: 10.1177/0022002719898881
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    References listed on IDEAS

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    4. Rodrigo R. Soares & Joana Naritomi, 2010. "Understanding High Crime Rates in Latin America: The Role of Social and Policy Factors," NBER Chapters, in: The Economics of Crime: Lessons For and From Latin America, pages 19-55, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Giacomo Battiston & Gianmarco Daniele & Marco Le Moglie & Paolo Pinotti, 2022. "Fueling Organized Crime: The Mexican War on Drugs and Oil Thefts," "Marco Fanno" Working Papers 0286, Dipartimento di Scienze Economiche "Marco Fanno".
    2. Williams Gilberto Jiménez-García & Wilson Arenas-Valencia & Natalia Bohorquez-Bedoya, 2023. "Violent Drug Markets: Relation between Homicide, Drug Trafficking and Socioeconomic Disadvantages: A Test of Contingent Causation in Pereira, Colombia," Social Sciences, MDPI, vol. 12(2), pages 1-16, January.

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