(2011-12-19) Johnson, Austin Phillip.; Green, Steven L.; Economics.; Baylor University. Dept. of Economics.
The United States has historically subsidized its farmers directly and indirectly
through a variety of different methods. In recent years, there has been evidence that
OECD agricultural subsidies are leading farmers in certain nations to begin growing
illegal plants that contain alkaloids for the production of narcotics. In this paper, I use
narcotic seizure data from the United States Drug Enforcement Agency as a proxy for
narcotics supply levels. Regression results strongly suggest a link between U.S. subsides
and drug production, but no link between U.S. subsidies and methamphetamine or
marijuana production.