Grupos de Investigación

Seminario IECON: "Following the Poppy trail. Origins and consequences of Mexican drug cartels"

Presenta Tommy E. Murphy (Universidad de San Andrés) en co-autoría con Martín A. Rossi


Drug cartels are one of the most conspicuous forms of criminal organizations, yet the large and growing literature on organized crime has almost exclusively focused on mafia-type organizations (Pinotti, 2015). Although undoubtedly sharing many characteristics with mafias, groups engaged in the production and distribution of illicit drugs are likely to have different nature, functioning and, most importantly, effect on society. This paper studies the origins, and economic and social consequences of some of the most prominent drug trafficking organizations in the world: the Mexican cartels. It first traces the current location of cartels to the places where Chinese migrated at the beginning of the 20th century, discussing and documenting how both events are strongly connected. Information on Chinese presence at the beginning of the 20th century is then used to instrument for cartel presence today, to identify the effect of cartels on society. Contrary to what seems to happen with other forms of organized crime, the IV estimates in this study indicate that at the local level there is a positive link between cartel presence and better socioeconomic outcomes (e.g. lower marginalization rates, lower illiteracy rates, higher salaries), better public services, and higher tax revenues, evidence that can contribute to explain why drug lords tend have great support in the local communities in which they operate.

Martes 13/11/2018
12 hs, Salón Multifuncional
Facultad de Ciencias Económicas y de Administración

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