Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26618
Authors: 
Lind, Jo Thori
Moene, Karl Ove
Willumsen, Fredrik
Year of Publication: 
2009
Series/Report no.: 
CESifo working paper 2573
Abstract: 
We show that the recent rise in Afghan opium production is caused by violent conflicts. Violence destroys roads and irrigation, crucial to alternative crops, and weakens local incentives to rebuild infrastructure and enforce law and order. Exploiting a unique data set, we show that Western hostile casualties, our proxy for conflict, have strong impact on subsequent local opium production. This proxy is shown to be exogenous to opium. We exploit the discontinuity at the end of the planting season: Conflicts have strong effects before and no effect after planting, assuring causality. Effects are strongest where government law enforcement is weak.
Subjects: 
Conflict
narcotics production
resource curse
Afghanistan
JEL: 
D74
H56
K42
O1
Document Type: 
Working Paper

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