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Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs

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  • Rodríguez-Pose, Andrés
  • Ganau, Roberto

Abstract

We examine whether organized crime affects firms' performance (defined using Total Factor Productivity growth) both directly and indirectly, by downsizing the positive externalities arising from the geographic concentration of (intra- and inter-industry) market-related firms. The analysis uses a large sample of Italian small- and medium-sized manufacturing firms over the period 2010-2013. The results highlight the negative direct effects of organized crime on firms' productivity growth. Any positive effect derived from industrial clustering is thoroughly debilitated by a strong presence of organized crime, and the negative moderation effect of organized crime on productivity growth is greater for smaller than for larger firms.

Suggested Citation

  • Rodríguez-Pose, Andrés & Ganau, Roberto, 2017. "Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs," CEPR Discussion Papers 12140, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12140
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    More about this item

    Keywords

    Industrial clustering; Total factor productivity; Organized crime; Externalities; Italy;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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