From drug trafficking to state capture: The dynamics of criminal governance, political violence, and crime diversification

Roxana Gutiérrez-Romero

No wp-2025-19, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This article develops and tests a theory of criminal governance, examining how drug trafficking organizations (DTOs) use bribery and violence to dominate resource-rich regions and counter state interventions. The study draws on data on over 500 political assassinations and 156 lethal attacks on politicians' relatives in Mexico since 2000. Using an instrumental variable approach, the causal effects of government actions on criminal strategies are identified. The findings reveal that DTOs use rent-seeking violence to influence the pool of political candidates in high-value areas.

Keywords: Crime; Governance; Political violence; Instrumental variable; Law enforcement (search for similar items in EconPapers)
Date: 2025
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