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Internal Cocaine Trafficking And Armed Violence In Colombia

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  • Jaime Millán‐Quijano

Abstract

This paper exploits time variations in international cocaine prices and potential trafficking routes within Colombia to estimate the effect of the illegal cocaine trade on changes in municipality homicide rates. I construct the potential internal cocaine‐trafficking network and exploit the fact that different regions in Colombia have comparative advantages in serving different international markets. My results suggest that when cocaine prices increase in either the United States or Europe, homicide rates increase in municipalities strategically placed to serve each international market. (JEL D74, K42, F19)

Suggested Citation

  • Jaime Millán‐Quijano, 2020. "Internal Cocaine Trafficking And Armed Violence In Colombia," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 624-641, April.
    • Handle: RePEc:bla:ecinqu:v:58:y:2020:i:2:p:624-641
    DOI: 10.1111/ecin.12771
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    References listed on IDEAS

    as
    1. Kugler, Maurice & Verdier, Thierry & Zenou, Yves, 2005. "Organized crime, corruption and punishment," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1639-1663, September.
    2. Oeindrila Dube & Juan F. Vargas, 2013. "Commodity Price Shocks and Civil Conflict: Evidence from Colombia," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1384-1421.
    3. Daniel Mejia & Daniel M. Rico, 2010. "La microeconomía de la producción y tráfico de cocaína en Colombia," Documentos CEDE 7293, Universidad de los Andes, Facultad de Economía, CEDE.
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    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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