Unintended consequences : how agricultural subsidies are fueling the drug trade.

Date
2011-12-19
Authors
Johnson, Austin Phillip.
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Worldwide access.
Access changed 7/1/13.
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Abstract

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.

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Keywords
International trade., Agricultural economics.
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