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Organized Crime and Productivity: Evidence from Firm-Level Data

Giuseppe Albanese () and Giuseppe Marinelli

Rivista italiana degli economisti, 2013, issue 3, 367-394

Abstract: In this paper we evaluate the effect of the presence of mafia organizations at local levelthrough the estimation of a production function over a stratified sample of Italian firms. We find evidenceof a negative impact on productivity, which is not significantly different between small and largefirms, nor between industrial and services firms. As a consequence, even if some enterprises could sufferless directly from the pervasiveness of organized crime, its overall effects on the local economic and noneconomicsystem damage all of the firms, regardless of their size and sector.

Keywords: Organized Crime; TFP; Production Function. (search for similar items in EconPapers)
Date: 2013
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Handle: RePEc:mul:jqat1f:doi:10.1427/74922:y:2013:i:3:p:367-394