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Cocaine production and trafficking : what do we know ?

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  • Mejia, Daniel
  • Posada, Carlos Esteban

Abstract

The main purpose of this paper is to summarize the information currently available on cocaine production and trafficking. The paper starts by describing the available data on cocaine production and trade, the collection methodologies (if available) used by different sources, the main biases in the data, and the accuracy of different data sources. Next, it states some of the key empirical questions and hypotheses regarding cocaine production and trade and takes a first look at how well the data match these hypotheses. The paper states some of the main puzzles in the cocaine market and studies some of the possible explanations. These puzzles and empirical questions should guide future research on the key determinants of illicit drug production and trafficking. Finally, the paper studies the different policies that producer countries have adopted to fight against cocaine production and the role consumer countries play in the implementation of anti-drug policies.

Suggested Citation

  • Mejia, Daniel & Posada, Carlos Esteban, 2008. "Cocaine production and trafficking : what do we know ?," Policy Research Working Paper Series 4618, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4618
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    References listed on IDEAS

    as
    1. Jeff DeSimone & Matthew C. Farrelly, 2003. "Price and Enforcement Effects on Cocaine and Marijuana Demand," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 98-115, January.
    2. Frank J. Chaloupka & Michael Grossman & John A. Tauras, 1999. "The Demand for Cocaine and Marijuana by Youth," NBER Chapters, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometric and Behavioral Economic Research, pages 133-156, National Bureau of Economic Research, Inc.
    3. Martha Bottía Noguera, 2003. "La Presencia Y Expansión Municipal De Las Farc: Es Avaricia Y Contagio, Mas Que Ausencia Estatal," Documentos CEDE 3060, Universidad de los Andes, Facultad de Economía, CEDE.
    4. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ignacio A. Navarro, 2011. "Cocaine Cities: Exploring the Relationship between Urban Processes and the Drug Trade in South America," WIDER Working Paper Series 009, World Institute for Development Economic Research (UNU-WIDER).
    2. Gerson Javier Perez, 2012. "Primera versión de la política de seguridad democrática: se cumplieron los objetivos?," Revista de Economía del Rosario, Universidad del Rosario, December.
    3. Daniel Mejía & Pascual Restrepo & Sandra V. Rozo, 2017. "On the Effects of Enforcement on Illegal Markets: Evidence from a Quasi-Experiment in Colombia," The World Bank Economic Review, World Bank, vol. 31(2), pages 570-594.
    4. Leonardo Raffo López, 2010. "Narcotráfico y conflicto: ¿por qué bajó el precio de la cocaína?," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 12(23), pages 229-258, July-Dece.
    5. Botero Degiovanni, Hernan, 2013. "The Effects of Drug Enforcement on Violence in Colombia 1999-2010: A Spatial Econometric Approach," MPRA Paper 49459, University Library of Munich, Germany.
    6. Leonardo Raffo López & José Luis Segura, 2015. "Las redes del narcotráfico y sus interacciones: un modelo teórico," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(32), pages 183-212, January-J.
    7. Gerson Javier Pérez V., 2012. "Goals Met or Just Empty Promises? First Version of the Democratic Security Policy in Colombia," Borradores de Economia 700, Banco de la Republica de Colombia.
    8. Daniel Mejía & Pascual Restrepo, 2013. "Bushes and Bullets: Illegal Cocaine Markets and Violence in Colombia," Documentos CEDE 11934, Universidad de los Andes, Facultad de Economía, CEDE.
    9. Daniel Mejía, 2008. "The War on Illegal Drugs in Producer and Consumer Countries: A Simple Analytical Framework," CESifo Working Paper Series 2459, CESifo.
    10. Juan Carlos Mu�oz-Mora & Santiago Tob�n-Zapata & Jesse d'Anjou, 2014. "Does land titling matter? The role of land property rights in the war on illicit crops in Colombia," HiCN Working Papers 168, Households in Conflict Network.
    11. Ignacio A. Navarro, 2011. "Cocaine Cities: Exploring the Relationship between Urban Processes and the Drug Trade in South America," WIDER Working Paper Series wp-2011-009, World Institute for Development Economic Research (UNU-WIDER).
    12. Ladino, Juan Felipe & Saavedra, Santiago & Wiesner, Daniel, 2021. "One step ahead of the law: The net effect of anticipation and implementation of Colombia’s illegal crops substitution program," Journal of Public Economics, Elsevier, vol. 202(C).
    13. Mr. Peter L. Pedroni & Ms. Concha Verdugo Yepes, 2011. "The Relationship Between Illicit Coca Production and Formal Economic Activity in Peru," IMF Working Papers 2011/182, International Monetary Fund.
    14. Rubio-Ramos, Melissa, 2024. "Trust, violence, and coca," Journal of Development Economics, Elsevier, vol. 167(C).
    15. José Fernández & Matteo Pazzona, 2015. "Evaluating the Spillover Effects of the Plan Colombia in Ecuador," Bristol Economics Discussion Papers 15/667, School of Economics, University of Bristol, UK.
    16. Arias-R., Omar Fdo. & Aza-Jacome, Alfonso, 2014. "From monopsonistic insurgent groups to oligopolistic cocaine traffickers: the market of cocaine in Colombia," MPRA Paper 60000, University Library of Munich, Germany.
    17. Daniel Mejía & Pascual Restrepo, 2008. "The War on Illegal Drug Production and Trafficking: An Economic Evaluation of Plan Colombia," Documentos CEDE 005123, Universidad de los Andes - CEDE.
    18. L. Leoncini & F. Rentocchini, 2010. "Counteracting cocaine production. An analysis based on a novel dataset," Working Papers 693, Dipartimento Scienze Economiche, Universita' di Bologna.
    19. Mejia, Daniel & Restrepo, Pascual, 2016. "The economics of the war on illegal drug production and trafficking," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 255-275.
    20. Angulo, Juan Carlos, 2024. "Books and bushes: Schooling decisions and coca production in Colombia," 2024 Annual Meeting, July 28-30, New Orleans, LA 344036, Agricultural and Applied Economics Association.
    21. Grisaffi, Thomas & Farthing, Linda & Ledebur, Kathryn & Paredes, Maritza & Pastor, Alvaro, 2021. "From criminals to citizens: The applicability of Bolivia’s community-based coca control policy to Peru," World Development, Elsevier, vol. 146(C).
    22. Melissa Rubio-Ramos, 2022. "Trust, Violence, and Coca," ECONtribute Discussion Papers Series 176, University of Bonn and University of Cologne, Germany.
    23. Paola Palacios, 2012. "Forced Displacement: Legal Versus Illegal Crops," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(2), pages 133-160, April.

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    More about this item

    Keywords

    Health Monitoring&Evaluation; Environmental Economics&Policies; Crime and Society; Crops&Crop Management Systems; Economic Theory&Research;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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