Arbeitspapier

Quantitative restrictions on the flow of narcotics: Supply and demand restraints in a north-south macro-model

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. This makes them a second best policy, particularly if the accompanying aid is not used for poverty alleviation and fails to expand domestic aggregate demand. Alternative, demand side restrictions will be found to be superior.

Sprache
Englisch

Erschienen in
Series: WIDER Discussion Paper ; No. 2001/60

Klassifikation
Wirtschaft
Conflict; Conflict Resolution; Alliances; Revolutions
International Economic Order and Integration
Open Economy Macroeconomics
Thema
North-South interaction
trade policy
narcotics control
Droge
Nord-Süd-Beziehungen
Theorie

Ereignis
Geistige Schöpfung
(wer)
Murshed, S. Mansoob
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2001

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Murshed, S. Mansoob
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2001

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