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Organized crime and labour productivity in the Mezzogiorno: an application of the "Kaldor-Verdoorn" model

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  • M. Centorrino
  • F. Ofria

Abstract

This paper verifies if the organised crime ("camorra", "cosa nostra", "'ndrangheta" and "sacra corona unita") has had a negative impact on the growth rate of labour productivity in Italian Regions mostly affected by such criminal phenomena (Calabria, Campania, Puglia and Sicily), during the period 1983-2005. The originality of this study, in comparison with previous ones on this subject, is the insertion of a "proxy" on criminal phenomena (that is the ratio between the homicide committed by "mafia, camorra, cosa nostra, 'ndrangheta and sacra corona unita" and the number of inhabitants in a particular Region) within the known model "Kaldor-Verdoor" that combines the growth rate of labour productivity and other economic variables. The econometric results regarding Southern Regions prove the negative effect of the variable "crime" on the growth rate of labour productivity, particularly in non-tradable sectors. It confirms the need of specific State policies in order to sustain the growth of labour productivity in the Mezzogiorno and to oppose the criminal phenomenon that hinders it.

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  • M. Centorrino & F. Ofria, 2008. "Organized crime and labour productivity in the Mezzogiorno: an application of the "Kaldor-Verdoorn" model," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1, pages 163-188.
    • Handle: RePEc:mul:jqyfkm:doi:10.1432/27151:y:2008:i:1:p:163-188
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    Cited by:

    1. Capuano, Carlo & Purificato, Francesco, 2012. "The macroeconomic impact of organized crime: a neo-Kaleckian perspective," MPRA Paper 40077, University Library of Munich, Germany.
    2. Ferdinando Ofria, 2012. "Twelve Years on from the Adoption of the Emu: An Ex-Post Assessment on the Process of Convergence of Southern and Central-Northern Italy," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(Special 1), pages 326-339, May.
    3. Vittorio, Daniele, 2009. "Organized crime and regional development. A review of the Italian case," MPRA Paper 16547, University Library of Munich, Germany.
    4. Ferdinando Ofria, 2009. "L'approccio Kaldor-Verdoorn: una verifica empirica per il Centro-Nord e il Mezzogiorno d'Italia (anni 1951-2006)," Rivista di Politica Economica, SIPI Spa, issue 1, pages 179-207, January-M.

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    Keywords

    Organized Crime; Labour Productivity;

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