Organized Crime and Foreign Direct Investment: the Italian Case

Daniele Vittorio and Ugo Marani

MPRA Paper from University Library of Munich, Germany

Abstract: The paper estimates the effects of organized crime on FDI inflows in 103 Italian provinces in the period 2004-06. The presence of organized crime at a provincial level is quantified through several indicators, based on data for different kinds of crimes: extortion; association for criminal purposes, including mafia (Art. 416 and 416 bis of the Italian Penal Code); attacks; arson. Several control variables are used, included a proxy for (financial) investment incentives provided by public sectors. Estimation suggests that FDI inflows are influenced by different variables. Our results show that the extent of extortion and the number of persons denounced for "criminal association" are significantly and negatively correlated with FDI inflows. Finally, our analysis suggests the presence of organized crime is a strong disincentive for foreign investors, particularly in the less developed Italian provinces.

Keywords: FDI determinants; Italy: Mezzogiorno; crime; regional attractiveness (search for similar items in EconPapers)
JEL-codes: F23 R30 R59 (search for similar items in EconPapers)
Date: 2008-02-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/7217/1/MPRA_paper_7217.pdf original version (application/pdf)

Related works:
Working Paper: Organized Crime and Foreign Direct Investment: The Italian Case (2008)
Working Paper: Organized Crime and Foreign Direct Investment: the Italian Case (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:7217

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter (winter@lmu.de).