Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs

Rodríguez-Pose, Andrés and Roberto Ganau
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose

No 12140, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Industrial clustering; Total factor productivity; Organized crime; Externalities; Italy (search for similar items in EconPapers)
JEL-codes: D24 L25 R11 R12 (search for similar items in EconPapers)
Date: 2017-07
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-geo, nep-sbm, nep-tid and nep-ure
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Industrial clusters, organized crime, and productivity growth in Italian SMEs (2018)
Working Paper: Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs (2017)
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