Economic Consequences of Drug Abuse and Illicit Trafficking

Abstract

Drug abuse among the youths, particularly among the adolescents has become a major social problem in all societies and economically the increasing drug abuse and illicit drug trafficking creates an extra burden of bearing cost to the country. It has minimum positive effects and large negative effects on different economic activities like productivity, saving, investment, trade etc. It also creates difficulties in the working of macroeconomic instruments which altogether prolong the time-frame for macroeconomic stabilization. Therefore, this paper studies the positive and negative effects of drug abuse and drug trafficking in different economic activities as well as in the system of the economy.