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The Effects of Drug Enforcement on Violence in Colombia 1999-2010: A Spatial Econometric Approach

  • Botero Degiovanni, Hernan
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    In this paper paper, I use Mejia and Restrepo's(2011d} strategy to disentangle the causal relationship between drug enforcement and violence. To test this relationship, I use information on Colombian municipalities during the period 1999-2010. Due to technological reasons related to the quality of terrain, climate, and locational characteristics of the Colombian territory, cocaine production is more productive at low altitudes. Using the altitude of each municipality and distance from capital cities as sources of exogenous variation, I estimate the effect of drug enforcement on violence in Colombia. To control for a possible omitted-variable bias in the estimations, I run a Panel Data Spatial Durbin Model (SDM). Additionally, I construct a set of indices with comparable units of measure which allows me to determine which percentage of the Colombian violence data is explained by drug enforcement. The results indicate that the Colombian government's enforcement activities increased in 0.98% the homicide rate and in 1.24% the displacement rate and the war among drug dealers increased in 4.00% the homicide rate and 0.16% the displacement rate in the period 1999-2010.

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    File URL: http://mpra.ub.uni-muenchen.de/49459/1/MPRA_paper_49459.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 49459.

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    Date of creation: 01 Sep 2013
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    Handle: RePEc:pra:mprapa:49459
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    1. Angrist, Joshua & Kugler, Adriana, 2007. "Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia," IZA Discussion Papers 2790, Institute for the Study of Labor (IZA).
    2. Mejia, Daniel & Posada, Carlos Esteban, 2008. "Cocaine production and trafficking : what do we know ?," Policy Research Working Paper Series 4618, The World Bank.
    3. Jo Thori Lind & Karl Ove Moene & Fredik Willumsen, 2014. "Opium for the Masses? Conflict-Induced Narcotics Production in Afghanistan," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 949-966, December.
    4. Miron, Jeffrey A, 2001. "Violence, Guns, and Drugs: A Cross-Country Analysis," Journal of Law and Economics, University of Chicago Press, vol. 44(2), pages 615-33, October.
    5. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer, vol. 7(2), pages 283-290.
    6. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, June.
    7. J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar.
    8. G�ran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
    9. Steven B. Caudill & Fernando C. Zanella & Franklin G. Mixon, Jr., 2000. "Is Economic Freedom One Dimensional? A Factor Analysis of Some Common Measures of Economic Freedom," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 25(1), pages 17-40, June.
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