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Criminalità e investimenti esteri. Un’analisi per le province italiane
[The effect of organized crime on Foreign Investments. An Empirical Analysis for the Italian Provinces]

Author

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  • Daniele, Vittorio

Abstract

This paper estimates the effects of organized crime on FDI inflows in 103 Italian Provinces in the period 2004-06. We measure the presence of "organized crime" at provincial level through several indicators, based on data for different kinds of crimes: extortions; "criminal association, included mafia" (art. 416 and 416 bis Italian Penal code); attempts; crime of arsons. Several control variables are used, included a proxy for (financial) investment incentives provided by public sectors. Estimations suggests that FDI inflows are influenced by different variables. In particular results shows as the number of extortions and the number of persons denounced for "crime association" are significantly and negatively correlated with FDI inflows. Our analysis suggests that the presence of organized crime is a strong disincentive for foreign investors, in particular in the less developed Italian provinces.

Suggested Citation

  • Daniele, Vittorio, 2007. "Criminalità e investimenti esteri. Un’analisi per le province italiane [The effect of organized crime on Foreign Investments. An Empirical Analysis for the Italian Provinces]," MPRA Paper 6417, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:6417
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    References listed on IDEAS

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    Cited by:

    1. 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.
    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. Lisi, Gaetano, 2010. "Occupazione irregolare e disoccupazione in Italia: un’analisi panel regionale [Underground Employment and Unemployment in Italy: A Panel Analysis]," MPRA Paper 22508, University Library of Munich, Germany.
    5. Lisi, Gaetano, 2009. "Il lavoro irregolare in Italia: un'analisi panel regionale [Underground Employment in the Regions of Italy: A Panel Analysis]," MPRA Paper 18525, University Library of Munich, Germany.
    6. Daniele, Vittorio & Marani, Ugo, 2011. "Organized crime, the quality of local institutions and FDI in Italy: A panel data analysis," European Journal of Political Economy, Elsevier, vol. 27(1), pages 132-142, March.

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    More about this item

    Keywords

    FDI determinants; Italy; Mezzogiorno; organized crime; regional attractiveness;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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