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Organized crime, the quality of local institutions and FDI in Italy: A panel data analysis

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  • Daniele, Vittorio
  • Marani, Ugo

Abstract

This paper examines the impact of crime on foreign direct investment (FDI) inflows in the Italian provinces. The incidence of organized crime is measured by the number of complaints regarding criminal offences of different kinds traditionally related to the mafia organizations. The results show how the correlation between organized crime and FDI is both negative and significant, even when an indicator of financial incentives for investment is included in the regressions. Our analysis shows that crime represents a deterrent for foreign investors, suggesting that high levels of (certain) crimes may be perceived as a signal of a local socio-institutional environment unfavourable for FDI.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 27 (2011)
Issue (Month): 1 (March)
Pages: 132-142

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Handle: RePEc:eee:poleco:v:27:y:2011:i:1:p:132-142

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Foreign direct investment Italy Organized crime Institutional quality;

References

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Citations

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Cited by:
  1. Giuseppe De Feo & Giacomo De Luca, 2013. "Mafia in the ballot box," Working Papers 1325, University of Strathclyde Business School, Department of Economics.
  2. Aleksynska, Mariya & Havrylchyk, Olena, 2013. "FDI from the south: The role of institutional distance and natural resources," European Journal of Political Economy, Elsevier, vol. 29(C), pages 38-53.
  3. Francesco Nicolli, 2012. "Convergence of waste-related indicators of environmental quality in Italy," Environmental Economics and Policy Studies, Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(4), pages 383-401, October.
  4. Ashby, Nathan J. & Ramos, Miguel A., 2013. "Foreign direct investment and industry response to organized crime: The Mexican case," European Journal of Political Economy, Elsevier, vol. 30(C), pages 80-91.
  5. Albanese Giuseppe & Marinelli Giuseppe, 2013. "Organized Crime and Productivity: Evidence from Firm-Level Data," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 367-394.
  6. Lanzafame, Matteo, 2013. "Crime and regional growth in Italy," MPRA Paper 44343, University Library of Munich, Germany.
  7. OA. Carboni & C. Detotto, 2013. "The economic consequences of crime in Italy," Working Paper CRENoS 201303, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  8. Rosetta Lombardo & Marianna Falcone, 2011. "Crime And Economic Performance. A Cluster Analysis Of Panel Data On Italy'S Nuts 3 Regions," Working Papers 201112, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  9. Ramos, Miguel A. & Ashby, Nathan J., 2013. "Heterogeneous firm response to organized crime: Evidence from FDI in Mexico," Journal of International Management, Elsevier, vol. 19(2), pages 176-194.

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