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Economía Coyuntural
Print version ISSN 2415-0622On-line version ISSN 2415-0630
Abstract
BANEGAS RIVERO, Roger Alejandro. ‘Drugs legalization and its implications for the Bolivian economic recovery. Revista de coyuntura y perspectiva [online]. 2022, vol.7, n.1, pp.53-101. ISSN 2415-0622. https://doi.org/1056274/ec.2022.v.7n1.3.
In this paper is estimated a relative importance of 5% of GDP {±1%} for the illegal drug economy in Bolivia by 95% of confidence level. Likewise, the potential tax collection derived from legalization could represent between 0.5 to 1.0% of GDP. The positive effects of legalized drug consumption would be reflected in the fiscal balance primary. A positive drug productivity shock would increase public investment in Health and Education, this results would be enhanced by improving institutional quality. The rate of drug addiction is an opportunity social cost wit has different dimensions by using a dynamic and stochastic general equilibrium model (DSGE).
Contribution/ originality:
The paper's primary contribution is oriented by quantifying the relative importance of traffic drugs in the Bolivian economy (Cocaine and Cannabis), by the same way, it is estimated the potential taxes from drugs legalization. Likewise, it is assed the social cost and economic benefits from its institutional innovation.
Keywords : Legalization of drugs; impacts; economic dynamics; Economic Growth; Illicit trade; Organized crime.
