Template-Type: ReDIF-Paper 1.0
Author-Name: King Yoong Lim 
Author-Name: Diego Morris
Title: Modeling the drugs and guns trade in a two-country model with endogenous growth
Abstract: This paper develops a two-country, dynamic general equilibrium model of endogenous growth with illicit drugs and guns trade. 
With a trade framework that unies both drug-control policies in consuming- and producing-country, as well as explicit modeling of firearm trade, 
the model is solved and parameterized to study the dynamic trade-off and growth effects of various drug-control policies. 
A production-consumption growth trade-off not previously documented in the literature is found. 
Further, under different conditions, and depending on the resulting gain in formal trade expansion, 
there are economic rationale to either a prohibitive or liberalization drug-control policy.
File-URL: http://www.ntu.ac.uk/__data/assets/pdf_file/0032/792176/modeling-drugs-guns-trade.pdf
File-Format: Application/pdf
File-Function: First version, 2018
Creation-Date: 2019-01
Classification-JEL: E26, F59, O41, O54
Keywords: Endogenous Growth, Drugs, Illicit Trade, Organized Crime
Handle: RePEc:nbs:wpaper:2019/01