Opium for the Masses? Conflict-induced Narcotics Production in Afghanistan

Jo Lind, Karl Ove Moene and Fredrik Willumsen ()
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Fredrik Willumsen: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway

No 05/2009, Memorandum from Oslo University, Department of Economics

Abstract: We show that the recent rise in Afghan opium production is caused by violent conflicts. Violence destroys roads and irrigation, crucial to alternative crops, and weakens local incentives to rebuild infrastructure and enforce law and order. Exploiting a unique data set, we show that Western hostile casualties, our proxy for conflict, have strong impact on subsequent local opium production. This proxy is shown to be exogenous to opium. We exploit the discontinuity at the end of the planting season: Conflicts have strong effects before and no effect after planting, assuring causality. Effects are strongest where government law enforcement is weak.

Keywords: Conflict; narcotics production; resource curse; Afghanistan (search for similar items in EconPapers)
JEL-codes: D74 H56 K42 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2009-02-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Opium for the Masses? Conflict-Induced Narcotics Production in Afghanistan (2014)
Working Paper: Opium for the Masses? Conflict-Induced Narcotics Production in Afghanistan (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2009_005

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