1. From Maize to Haze: Agricultural Shocks and the Growth of the Mexican Drug Sector
- Author:
- Oeindrila Dube, Omar Garcia-Ponce, and Kevin Thom
- Publication Date:
- 02-2014
- Content Type:
- Working Paper
- Institution:
- Center for Global Development
- Abstract:
- We examine how commodity price shocks experienced by rural producers affect the drug trade in Mexico. Our analysis exploits exogenous movements in the Mexican maize price stemming from weather conditions in U.S. maize-growing regions, as well as export flows of other major maize producers. Using data on over 2,200 municipios spanning 1990-2010, we show that lower prices differentially increased the cultivation of both marijuana and opium poppies in municipios more climatically suited to growing maize. This increase was accompanied by differentially lower rural wages, suggesting that households planted more drug crops in response to the decreased income generating potential of maize farming.
- Topic:
- Agriculture, Economics, Poverty, War on Drugs, and Narcotics Trafficking
- Political Geography:
- Latin America and Mexico