TY - JOUR
T1 - The economic consequences of the mexican drug war
AU - De La Miyar, Jose Roberto Balmori
N1 - Publisher Copyright:
© 2016 Walter de Gruyter GmbH, Berlin/Boston.
PY - 2016/8/1
Y1 - 2016/8/1
N2 - Military crackdowns often disrupt economic development by exacerbating violence. This paper examines the case of the Mexican Drug War, employing synthetic control methods. To prove causality, I use variation on statewide military operations, as well as the rollout of the war. Findings indicate a decrease in GDP per capita equal to 0.5%, in states with military operations. Determinants by which the Mexican Drug War hampered economic development include a proportional reduction in consumption per capita, and a decline in productive investment of at least 0.3%, driven by a drop of 3.2% in commercial credit granted to businesses.
AB - Military crackdowns often disrupt economic development by exacerbating violence. This paper examines the case of the Mexican Drug War, employing synthetic control methods. To prove causality, I use variation on statewide military operations, as well as the rollout of the war. Findings indicate a decrease in GDP per capita equal to 0.5%, in states with military operations. Determinants by which the Mexican Drug War hampered economic development include a proportional reduction in consumption per capita, and a decline in productive investment of at least 0.3%, driven by a drop of 3.2% in commercial credit granted to businesses.
KW - Economic growth
KW - Mexico
KW - Organized crime
KW - Synthetic control methods
KW - War on drugs
UR - http://www.scopus.com/inward/record.url?scp=84983372516&partnerID=8YFLogxK
U2 - 10.1515/peps-2016-0014
DO - 10.1515/peps-2016-0014
M3 - Artículo
AN - SCOPUS:84983372516
SN - 1079-2457
VL - 22
SP - 213
EP - 246
JO - Peace Economics, Peace Science and Public Policy
JF - Peace Economics, Peace Science and Public Policy
IS - 3
ER -