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Legal opacity, narcotics laws, and drug seizures

Author

Listed:
  • N. Moreau-Kastler

    (CEPS - Centre d'Economie de l'ENS Paris-Saclay - Université Paris-Saclay - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay)

  • Farid Toubal

    (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, CEPR - Center for Economic Policy Research, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

We show that legal opacity is a strong factor in drug trafficking. We develop a new framework that illustrates how legal opacity influences countries' seizure rates.Legal opacity reduces the detection of illicit flows and increases their volumes because it lowers trafficking costs. We use detailed information from financial systems evaluations, international standards cooperation mechanisms, and economic indicators to construct a new worldwide legal opacity index that covers each of the last two decades.Our empirical results reveal the importance of legal opacity and the enforcement of narcotics laws for drug seizure rates.

Suggested Citation

  • N. Moreau-Kastler & Farid Toubal, 2024. "Legal opacity, narcotics laws, and drug seizures," Working Papers hal-04682534, HAL.
    • Handle: RePEc:hal:wpaper:hal-04682534
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