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Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs

Roberto Ganau and Andres Rodrigues-Pose
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose ()

No 1719, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

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: Total Factor Productivity; Organized crime; Industrial clustering; Externalities; Italy (search for similar items in EconPapers)
JEL-codes: J61 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eur and nep-ure
Date: 2017-07, Revised 2017-07
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http://econ.geo.uu.nl/peeg/peeg1719.pdf Version July 2017 (application/pdf)

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