Supply-Side Drug Enforcement and Economic Development

Daniela Horta-Saenz () and Anderson Tami-Patiño ()
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Daniela Horta-Saenz: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway, https://daniela-horta-saenz.github.io/
Anderson Tami-Patiño: Dept. of Economics, KIMEP University, Postal: KIMEP University, Department of Economics, 4 Abai Avenue, 050010 Almaty, Kazakhstan, https://anderson-tami-patino.github.io/anderson-tami-patino/

No 5/2026, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: Do coercive efforts to dismantle illicit economic activity promote development, or can they inadvertently undermine it? We study this question in the context of Colombia’s large-scale aerial eradication of coca crops using glyphosate. We digitize detailed geographic data on sprayed areas and exploit quasi-random variation in exposure to eradication flights to estimate effects on human capital and socioeconomic outcomes. In the short term, aerial eradication increases school dropout, primarily through negative income shocks to affected households. Over time, exposed villages exhibit lower educational attainment, higher child labor, earlier marriage, and poorer living conditions even after spraying ceased.

Keywords: Drug Control Policies; Human Capital; Rural Development (search for similar items in EconPapers)
JEL-codes: I25 K42 O15 (search for similar items in EconPapers)
Pages: 93 pages
Date: 2026-04-23
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