From Cocaine to Avocados: Criminal Market Expansion and Violence

Abstract

Most of what we know about organized criminal violence comes from research on illicit narcotics markets. Yet criminal groups also fight to capture markets for licit commodities, as evidenced by Sicilian lemons and Mexican avocados. When do organized criminal groups violently expand into markets for licit goods? We argue that rapid increases in the share of a good’s export value create opportunities for immediate profit and future market manipulation. These opportunities lead to violence as groups expand their territorial holdings and economic portfolio. We provide subnational evidence of our mechanism using data on avocado exports from Mexico, and address reverse causality with Google Trends data on the popularity of web searches for “avocado toast.” We also provide cross-national evidence by combining data from the Atlas of Economic Complexity, V-Dem, and the United Nations Office on Drugs and Crime (UNODC). We find that increases in a country’s share of global export value for agricultural goods are associated with more homicides—but only where organized criminal groups are present.