Abstract
The publication presents methodology for estimation of illicit drug market. Estimation of value of drug trade has two stages: estimation of volume of drug trade and then its valuation by drug prices.
The volume of drug trade is results from the estimation of consumed drugs from demand side, which is based on prevalence of drug use in a country. The consumed drugs are described by origin of drugs (import and/or domestic production).
Drug purities on both wholesale and retail levels play important role here. The flows of illicit drugs in a country are valued by drug prices again on both wholesale and retail level.
The financial indicators are recorded into the system of national accounts and value added from drug trade is estimated. The methodology was used for data from the Czech Republic, Italy and Spain.
The results of the value added from illicit drug market amounted 0.2-0.3 % of GDP in these countries.