Modeling the drugs and guns trade in a two-country model with endogenous growth

King Yoong Lim and Diego Morris ()

NBS Discussion Papers in Economics from Economics, Nottingham Business School, Nottingham Trent University

Abstract: This paper develops a two-country, dynamic general equilibrium model of endogenous growth with illicit drugs and guns trade. With a trade framework that unies both drug-control policies in consuming- and producing-country, as well as explicit modeling of firearm trade, the model is solved and parameterized to study the dynamic trade-off and growth effects of various drug-control policies. A production-consumption growth trade-off not previously documented in the literature is found. Further, under different conditions, and depending on the resulting gain in formal trade expansion, there are economic rationale to either a prohibitive or liberalization drug-control policy.

Keywords: Endogenous Growth; Drugs; Illicit Trade; Organized Crime (search for similar items in EconPapers)
JEL-codes: E26 F59 O41 O54 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-dge, nep-gro and nep-mac
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http://www.ntu.ac.uk/__data/assets/pdf_file/0032/7 ... drugs-guns-trade.pdf First version, 2018 (application/pdf)

Related works:
Journal Article: The economics of the illicit drugs-for-guns trade and growth (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:nbs:wpaper:2019/01

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