Quantitative Restrictions on the Flow of Narcotics: Supply and Demand Restraints in a North-South Macro-model

Mansoob Murshed

No DP2001-60, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper constructs a macroeconomic model of North-South interaction where the flow of narcotics from the South to the North is restricted. Their economic effects are akin to quantitative restrictions in trade policy. Two alternative policy scenarios will be considered. One involves reducing the supply of drugs at source, accompanied by aid. Supply side restrictions have negative aggregate supply side effects in the producing region, because of the monopoly rents generated from that type of control.

Keywords: Drug trafficking; Economic assistance and foreign aid; International trade; Poverty (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:unu:wpaper:dp2001-60

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