FROM MAIZE TO HAZE: AGRICULTURAL SHOCKS AND THE GROWTH OF THE MEXICAN DRUG SECTOR

Understanding how economic incentives affect illegal drug production is essential for crafting policies in response to the international drug trade. Policymakers typically face a choice between two strategies: targeting criminal groups via law enforcement, and offering producers incentives to engage in alternate activities. Yet, little is known about how the returns to alternate legal activities affect drug supply. We contribute to this literature by examining how shocks to legal commodity prices affect the drug trade in Mexico. Our analysis exploits exogenous movements in the Mexican maize price stemming from weather conditions in US maize‐growing regions, as well as exports of other major maize producers. Using data on over 2200 municipios spanning 1990–2010, we show that lower prices differentially increased the cultivation of both marijuana and opium poppies in municipios more climatically suited to growing maize. We also find impacts on downstream drug‐trade outcomes, including drug cartel operations and killings perpetrated by these groups. Our findings demonstrate that maize price changes contributed to the burgeoning drug trade in Mexico, and point to the violent consequences of an expanding drug sector.     

World Development and the Restructuring of the Industrial Economies

This paper reports on the joint SPM/CRANEC Catholic University of Milan symposium on “World Development and the Restructuring of Industrial Economies” held at Bellagio, Lake Como, Italy during the week of 10–15 September 1979. The symposium was organized to discuss the adjustments required by the industrialized economies when adapting to the changes inherent in present world development trends, as well as to help define national and international policy measures that might be used to facilitate the restructuring process. This report reviews the key issues, alternative strategies for restructuring, and policy measures for restructuring discussed at the symposium. It also offers some conclusions based on the results of the symposium.     

Age structure effects and growth in the OECD, 1950–1990

Economic growth depends on human resources and human needs. The demographic age structure shapes both of these factors. We study five-year data from the OECD countries 1950–1990 in the framework of an age structure augmented neoclassical growth model with gradual technical adjustment. The model performs well in both pooled and panel estimations. The growth patterns of GDP per worker (labor productivity) in the OECD countries are to a large extent explained by age structure changes. The 50–64 age group has a positive influence, and the group above 65 contributes negatively, while younger age groups have ambiguous effects. However, the mechanism behind these age effects is not yet resolved. Received: 16 January 1997/Accepted: 2 July 1998     

Curved versus straight scissors to avoid 3rd and 4th degree perineal tears: A randomised feasibility study

BackgroundSevere perineal tears sustained during childbirth cause significant distress and morbidity amongst women. The objective of this study was to compare the use of straight scissors for cutting an episiotomy with the use of curved scissors, which are designed to curve away from the anal sphincter.MethodsWe used a single-centre, randomised feasibility trial. The intervention was the use of curved scissors. Women were recruited during a prenatal visit and randomised in the delivery suite, when it became clear that an episiotomy was required. The feasibility outcomes were the proportion of women able to be recruited, randomised and followed up. We also calculated the incidence of obstetric anal sphincter injury when either straight or curved scissors were used to cut an episiotomy. Other outcomes assessed were pain, length of hospital stay, perineal infection and perineal dehiscence.ResultsOf the 155 patients recruited in the prenatal period, only 20 (12.9%) were eventually randomised at birth. The main reasons for the high loss were that women either did not have a vaginal delivery (38, 24.5%), or they did not need an episiotomy (72, 46.5%). Rates of obstetric anal sphincter injury and other outcomes were similar between groups.DiscussionAnal sphincter injury during childbirth remains an important problem. Although the use of curved scissors provides a theoretical solution, we found that the high attrition rate made feasibility of conducting a suitably powered, randomised trial using the current design untenable. Alternative strategies have been suggested to make any future study more viable.     

Trade sophistication in developing countries: Does export destination matter?

We investigate whether exports to developed economies stimulate export sophistication (represented by UNCTAD’s index of export similarity) in developing countries. Results from fixed-effects estimations suggest that exporting to developed economies enhances the sophistication of exports in the exporting country but there are diminishing returns to this effect. We also find non-linear effects from FDI and income on export sophistication with the effect of income exhibiting diminishing returns which suggests that the gains from exporting to developed economies are higher for lower-income countries; i.e., as income increases, the gains taper off. We discuss the policy implications of these results.     

Impact of technology-intensive exports on GDP of Western Balkan Countries

This paper aims to determine, by means of regression analysis, which exported product groups, categorized according to their technological intensity, have the greatest effect on the movements in the volume of GDP p/c of the Western Balkan Countries (WBCs). The analysis, based on statistical-econometric methodology, includes 16 commodity groups per each WBC (Albania; Bosnia and Herzegovina; Croatia; FYR Macedonia; Montenegro; Serbia). The data were collected and presented in accordance with the HS4 system classification, which is also used for development of the ITC’s Trade Map. The results of the analysis show that those commodity groups produced by medium-low and low technology industries have the greatest effect on the change in the volume of GDP p/c in all WBCs in the period 2005–2015.     

Does trust increase willingness to pay higher taxes to help the needy?

The article studies the causal effect of trust on the willingness to pay higher taxes to help the needy in a sample of 29 countries of Eastern and Southern Europe, and the former Soviet Union and Mongolia. It is hypothesized that interpersonal trust leads to a greater willingness to pay taxes to help the needy since (i) trust increases the likelihood of helping strangers; (ii) trust fosters solidarity and cooperation when working to solve common problems in society; and (iii) trust reduces suspicion with respect to the perceived misuse of redistributed money. Three key findings are that the more people trust each other, the more they are ready to support the welfare state; the effect of trust on welfare state support holds even in a contextual environment characterized by rather lower levels of trust and relatively underdeveloped systems of redistribution; and higher individual‐level trust fosters tax morale and helps deter tax evasion.     

The TRIPs agreement and technological innovation

In this paper we attempt to evaluate the possible spill-over of the international agreement on Trade-Related Aspects of Intellectual Property rights (TRIPs for short), underwritten in 1994, regarding economic growth for both wealthy and developing countries. We find that the TRIPs convention has prompted, at the same time, innovation in developing countries and a rise in the per capita income for all the economies involved in international commerce. As a by-product of our research we find that, despite the strong growth of resident patents application after 1995 (the year in which TRIPs came into force), most of the increase in the gross domestic product per capita in developing countries is attributable to the international transfer of technologies, via foreign direct investments.     

INFORMATION INTERDEPENDENCE: Keohane and Nye's complex interdependence in the information age

A well-known and respected attempt to theorize interdependence in the field of international relations is complex interdependence. In Power and Interdependence , Robert O. Keohane and Joseph S. Nye, Jr define interdependence as reciprocal effects among actors resulting from 'international transactions - flows of money, goods, people and messages across international boundaries'. Though much research has been done on the effects of interdependence on the first three, the flows of messages have been studied less often. Keohane and Nye addressed the issue in a 1998 article in Foreign Affairs , discussing changes in the global environment resulting from the information age which have had an impact on their ideas. This article proposes to go deeper into complex interdependence. The world is becoming increasingly 'information interdependent' and this essay is an attempt to apply the assumptions and concepts presented in complex interdependence to the information age. In the final analysis, complex interdependence complements research from the field of communications, that information flows should be understood as underlying mechanisms and processes that facilitate contextual understanding of issues. It maintains the integrity of the assumptions of complex interdependence, while adding an understanding of the nature of information and information flows.