The Use of Violence in Illegal Markets: Evidence from Mahogany Trade in the Brazilian Amazon
- (pp. 30-57)
(Complimentary)
Abstract
We provide evidence on the effect of market illegality on violence. Brazil was historically the main exporter of mahogany. Starting in the 1990s, trade was restricted and eventually prohibited. We build on previous evidence that mahogany trade persisted after prohibition and document relative increases in violence in areas with natural occurrence of mahogany. We show that as illegal activity receded in the late 2000s so did the relative increase in violence. We describe an experience of increase in violence following the transition of a market from legal to illegal and contribute to the evaluation of prohibition policies under limited enforcement.Citation
Chimeli, Ariaster B., and Rodrigo R. Soares. 2017. "The Use of Violence in Illegal Markets: Evidence from Mahogany Trade in the Brazilian Amazon." American Economic Journal: Applied Economics, 9 (4): 30-57. DOI: 10.1257/app.20160055Additional Materials
JEL Classification
- F14 Empirical Studies of Trade
- K42 Illegal Behavior and the Enforcement of Law
- L73 Forest Products
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O19 International Linkages to Development; Role of International Organizations
- Q23 Renewable Resources and Conservation: Forestry
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