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

Jesús Gorrín, José Morales-Arilla and Bernardo Ricca

Journal of International Economics, 2023, vol. 144, issue C

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.

Keywords: Exports; Violence; Mexico; Regression discontinuity (search for similar items in EconPapers)
JEL-codes: F14 K42 K49 O17 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:144:y:2023:i:c:s0022199623000612

DOI: 10.1016/j.jinteco.2023.103775

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