IDEAS home Printed from https://ideas.repec.org/p/cgd/wpaper/355.html
   My bibliography  Save this paper

From Maize to Haze: Agricultural Shocks and the Growth of the Mexican Drug Sector - Working Paper 355

Author

Listed:
  • Oeindrila Dube, Omar Garcia-Ponce, and Kevin Thom

Abstract

We 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 2,200 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 found 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.

Suggested Citation

  • Oeindrila Dube, Omar Garcia-Ponce, and Kevin Thom, 2014. "From Maize to Haze: Agricultural Shocks and the Growth of the Mexican Drug Sector - Working Paper 355," Working Papers 355, Center for Global Development.
  • Handle: RePEc:cgd:wpaper:355
    as

    Download full text from publisher

    File URL: http://www.cgdev.org/publication/maize-haze-agricultural-shocks-and-growth-mexican-drug-sector-working-paper-355
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fl├╝ckiger, Matthias & Ludwig, Markus, 2015. "Economic shocks in the fisheries sector and maritime piracy," Journal of Development Economics, Elsevier, vol. 114(C), pages 107-125.
    2. Donald J. Lacombe & Miguel Flores, 2017. "A hierarchical SLX model application to violent crime in Mexico," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 119-134, January.
    3. repec:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0102-6 is not listed on IDEAS
    4. Christopher Blattman & Jeannie Annan, 2015. "Can Employment Reduce Lawlessness and Rebellion? A Field Experiment with High-Risk Men in a Fragile State," NBER Working Papers 21289, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    agriculture; mexico; drug trade;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cgd:wpaper:355. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publications Manager). General contact details of provider: http://edirc.repec.org/data/cgdevus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.