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Export side effects of wars on organized crime: The case of Mexico

Author

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  • Gorrín, Jesús
  • Morales-Arilla, José
  • Ricca, Bernardo

Abstract

This paper finds that law enforcement interventions during the Mexican Drug War (MDW) hindered local export growth. We leverage exogenous variation in drug enforcement from the close election of mayors affiliated with the national ruling party during the MDW. Firms servicing the same markets but exogenously exposed to drug enforcement experienced lower export growth. The MDW decreased capital investments, eroding productivity gains in capital-intensive activities.

Suggested Citation

  • Gorrín, Jesús & Morales-Arilla, José & Ricca, Bernardo, 2023. "Export side effects of wars on organized crime: The case of Mexico," Journal of International Economics, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:inecon:v:144:y:2023:i:c:s0022199623000612
    DOI: 10.1016/j.jinteco.2023.103775
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    More about this item

    Keywords

    Exports; Violence; Mexico; Regression discontinuity;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • K49 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Other
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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