Document Type
Article
Publication Date
10-27-2020
Publication Title
Review of Economic Analysis (REA)
DOI
10.15353/rea.v12i3.1790
ISSN
1973-3909
Abstract
Dunning’s Eclectic Paradigm is used to assess the effectiveness and impact of U.S. drug prohibition policy on economic growth and political stability in Latin American countries as well as the decision making of Latin American Transnational Criminal Enterprises (TCE) in the cocaine-coca market. Results showed U.S. drug prohibition policy reduces the on-site supply but does not significantly reduce the transportation of cocaine and coca. U.S. drug prohibition policy also generated political instability for the region and revealed policy externalities that facilitated TCE expansion. Tougher U.S. drug prohibition policy advances TCE by amplifying the impact that unemployment and local wages have on increases in cocaine-coca production, and by limiting the impact of control of corruption and economic freedom on coca eradication. Our results signal that a site-specific approach accompanied with policies that improve the farmers’ economic freedom, such as land formalization rights, and policies that lower unemployment rate facilitate effective U.S. drug prohibition policy.
Recommended Citation
Saenz, Mariana, Anthony G. Barilla.
2020.
"Identifying New Approaches for U.S. Drug Policy using Ownership, Location, and Internalization Factors."
Review of Economic Analysis (REA), 12 (3): 271-319: International Centre for Economic Analysis.
doi: 10.15353/rea.v12i3.1790 source: https://openjournals.uwaterloo.ca/index.php/rofea/article/view/1790
https://digitalcommons.georgiasouthern.edu/economics-facpubs/188
Comments
© 2020 Mariana Saenz and Anthony G. Barilla. Licensed under the Creative Commons Attribution - Noncommercial 3.0 Licence (http://creativecommons.org/licenses/by-nc/3.0/.Available at http://rofea.org.