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Publication type: Bachelor thesis
Title: Coca cultivation in Colombia and its regional economic impact
Authors: Wachter, Daniel
Advisors / Reviewers: Rueda Maurer, Maria Clara
DOI: 10.21256/zhaw-18923
Extent: 57
Issue Date: 2019
Publisher / Ed. Institution: ZHAW Zürcher Hochschule für Angewandte Wissenschaften
Publisher / Ed. Institution: Winterthur
Language: English
Subject (DDC): 338: Production
Abstract: The cocaine trafficking has not changed the national sectoral composition of the Colombian economy, nonetheless has decelerated its economic growth. On the regional level, however, where coca cultivation is concentrated, further analysis is necessary. Since the previous reports focused on aggregate level data, the regional impact is still not clearly defined. Using the variable "coca cultivation hectares" and "estimated coca cultivation income" and not illicit financial flows as previous studies, facilitate to portrait the effect on regional economies. The goal of this paper is to analyze if coca regions in Colombia show the same relationship to the illicit market as the national economy. To establish if the development of local productive economic sectors is affected by changes in the coca cultivation. Based on previous analysis, the methodology consists of a time series from 2005 to 2016, where the economic development of coca regions is compared to other areas with no or lower coca cultivation. Then the relationship between coca cultivation and regional GDP is established through a correlation analysis. To finally measure the causality through a linear regression model using the least squares method. The result shows that the economic development in coca regions has no particular divergence to other regions or the national economic trend. However, a low linear negative relationship is observed between coca cultivation and regional GDP, that might suggest, but no explain a deceleration of the regional economy as coca cultivation increases. The regression model, however, shows no significant results, reflecting the complexity to measure the effects illicit economies have own formal productive sectors.
License (according to publishing contract): CC BY-NC-ND 4.0: Attribution - Non commercial - No derivatives 4.0 International
Departement: School of Management and Law
Appears in collections:BSc Betriebsökonomie

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