Aug 07, 2021

From Maize to Haze: Agricultural Shocks and the Growth of the Mexican Drug Sector - Working Paper 355 | Center For Global Development

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...

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