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The impact of anti-organized crime on business environment: Evidence from China's anti-Mafia campaign

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  • Lin, Xifen
  • Wu, Wanqiang
  • Lan, Huanqi
  • Ma, Yong

Abstract

This paper investigates the impact of China's 2018–2020 anti-Mafia campaign on the business environment. Using a novel dataset on organized crime prosecutions across China's prefecture-level cities and above, we find that the anti-Mafia campaign significantly improved the overall business environment. Probing the mechanisms, we show that the anti-Mafia policy enhanced the business environment through four key channels: increasing international trade and investment, bolstering domestic commercial activities, improving government effectiveness, and promoting public safety. Our findings pass a battery of robustness checks. We contribute to studies on organized crime economics and highlight the need for continued efforts to combat the Mafia.

Suggested Citation

  • Lin, Xifen & Wu, Wanqiang & Lan, Huanqi & Ma, Yong, 2024. "The impact of anti-organized crime on business environment: Evidence from China's anti-Mafia campaign," International Review of Economics & Finance, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:reveco:v:95:y:2024:i:c:s1059056024004271
    DOI: 10.1016/j.iref.2024.103435
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