Organized Crime and Foreign Direct Investment: The Italian Case
AbstractThis paper examines the impact of organized crime on the regional distribution of foreign direct investment (FDI) inflows into Italy. The incidence of crime has been calculated considering the number of complaints for different crimes. The analysis shows how the correlation between organized crime is both negative and significant. This relationship appears strong even when a financial investment incentives indicator is included into the regressions. Furthermore, such a correlation between crime and FDI seems to be valid only for certain crimes, traditionally related to the presence of organized crime of the Mafia type. Although our analysis shows that organized crime is, in itself, a disincentive for investment, it also suggests that certain levels of crime can be perceived by foreign investors as a signal of an unfavorable business climate.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2416.
Date of creation: 2008
Date of revision:
FDI determinants; Italy; crime; regional attractiveness;
Other versions of this item:
- Vittorio, Daniele & Ugo, Marani, 2008. "Organized Crime and Foreign Direct Investment: the Italian Case," MPRA Paper 7279, University Library of Munich, Germany.
- Vittorio, Daniele & Ugo, Marani, 2008. "Organized Crime and Foreign Direct Investment: the Italian Case," MPRA Paper 7217, University Library of Munich, Germany.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
- R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lionel Artige & Rosella Nicolini, 2006.
"Evidence on the Determinants of Foreign Direct Investment. The Case of Three European Regions,"
CREPP Working Papers
0607, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
- Lionel Artige & Rosella Nicolini, 2005. "Evidence on the Determinants of Foreign Direct Investment: The Case of Three European Regions," UFAE and IAE Working Papers 655.05, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Roberto, Basile, 2004.
"Acquisition versus greenfield investment: the location of foreign manufacturers in Italy,"
Regional Science and Urban Economics,
Elsevier, vol. 34(1), pages 3-25, January.
- Roberto Basile, 2002. "Acquisition versus greenfield investment: the location of foreign manufacturers in Italy," ISAE Working Papers 27, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
- Taylor, William E., 1980. "Small sample considerations in estimation from panel data," Journal of Econometrics, Elsevier, vol. 13(2), pages 203-223, June.
- Hefeker, Carsten & Busse, Matthias, 2005.
"Political Risk, Institutions and Foreign Direct Investment,"
HWWA Discussion Papers
315, Hamburg Institute of International Economics (HWWA).
- Busse, Matthias & Hefeker, Carsten, 2007. "Political risk, institutions and foreign direct investment," European Journal of Political Economy, Elsevier, vol. 23(2), pages 397-415, June.
- Crozet, M. & Mayer, T. & Micchielli, J.L., 2000.
"How Do Firms Agglomerate? A Study of FDI in France?,"
Papiers d'Economie MathÃÂ©matique et Applications
2000.50, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Crozet, Matthieu & Mayer, Thierry & Mucchielli, Jean-Louis, 2004. "How do firms agglomerate? A study of FDI in France," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 27-54, January.
- Crozet, Matthieu & Mayer, Thierry & Mucchielli, Jean-Louis, 2003. "How do Firms Agglomerate? A Study of FDI in France," CEPR Discussion Papers 3873, C.E.P.R. Discussion Papers.
- Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
- Matthieu Crozet & Jean-Louis Mucchielli & Thierry Mayer, 2004. "How do firms agglomerate? A study of FDI in france," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
- Vittorio Daniele, 2007. "Incentivi economici e disincentivi di contesto: gli investimenti esteri nel Mezzogiorno," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2007(2), pages 5-34.
- Aikaterini Kokkinou & Ioannis Psycharis, 2004. "Foreign Direct Investments, Regional Incentives and Regional Attractiveness in Greece," ERSA conference papers ersa04p559, European Regional Science Association.
- Konings, Jozef, 2004. "The employment effects of foreign direct investment," EIB Papers 4/2004, European Investment Bank, Economics Department.
- Basile Roberto & Castellani Davide & Zanfei Antonello, 2004. "La localizzazione delle imprese multinazionali in Europa: il ruolo delle politiche dell'UE e le peculiarità dell'Italia," L'industria, Società editrice il Mulino, issue 3, pages 571-596.
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- Basile R. & Giunta A., 2005. "La localizzazione degli investimenti diretti esteri in Italia: vincoli istituzionali, Mezzogiorno e politiche di attrazione," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 771-794.
- Michael Devereux & Rachel Griffith & Helen Simpson, 2004. "Agglomeration, regional grants and firm location," IFS Working Papers W04/06, Institute for Fiscal Studies.
- Roberto Basile, 2002. "The Locational Determinants of Foreign-Owned Manufacturing Plants in Italy: Preliminary Results," Rivista di Politica Economica, SIPI Spa, vol. 92(4), pages 61-92, July-Augu.
- Peri Giovanni, 2004. "Socio-Cultural Variables and Economic Success: Evidence from Italian Provinces 1951-1991," The B.E. Journal of Macroeconomics, De Gruyter, vol. 4(1), pages 1-36, September.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Agiomirgianakis, G. M. & Asteriou, D. & Papathoma, K., 2003. "The determinants of foreign direct investment: a panel data study for the OECD countries," Working Papers 03/06, Department of Economics, City University London.
- Marco Committeri, 2004. "Investire in Italia? Risultati di una recente indagine empirica," Temi di discussione (Economic working papers) 491, Bank of Italy, Economic Research and International Relations Area.
- Daniele V., 2005. "Perché le imprese estere non investono al Sud?," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 795-818.
- Uppenberg, Kristian & Riess, Armin, 2004. "Determinants and growth effects of foreign direct investment," EIB Papers 3/2004, European Investment Bank, Economics Department.
- Mayer, Thierry, 2004. "Where do foreign firms locate in France and why?," EIB Papers 7/2004, European Investment Bank, Economics Department.
- Devereux, Michael P. & Griffith, Rachel, 2003. "The Impact of Corporate Taxation on the Location of Capital: A Review," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 33(2), pages 275-292, September.
- Roberto Basile & Luigi Benfratello & Davide Castellani, 2005. "Attracting Foreign Investments in Europe - are Italian Regions Doomed?," ERSA conference papers ersa05p148, European Regional Science Association.
- Shang-Jin Wei, 2000. "Local Corruption and Global Capital Flows," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(2), pages 303-354.
- BARRIOS, Salvador & GORG, Holger & STROBL, Eric, 2003. "Multinationals' location choice, agglomeration economies and public incentives," CORE Discussion Papers 2003017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gaetano Lisi & Maurizio Pugno, 2009.
"Entrepreneurship and the Hidden Economy: an Extended Matching Model,"
2009-04, Universita' di Cassino, Dipartimento di Scienze Economiche.
- Gaetano Lisi & Maurizio Pugno, 2010. "Entrepreneurship and the Hidden Economy: An Extended Matching Model," International Economic Journal, Taylor & Francis Journals, vol. 24(4), pages 587-605.
- Pugno, Maurizio & Lisi, Gaetano, 2010. "Entrepreneurship and the Hidden Economy: An Extended Matching Model," MPRA Paper 25301, University Library of Munich, Germany.
- Attilio Di Battista, 2013. "The Role of Geography and Institutions in determining FDI flows into Italian Provinces," ERSA conference papers ersa13p1185, European Regional Science Association.
- Gaetano Lisi, 2010. "The Strange Case of Dr. “Unemployed” and Mr “Hidden” in Italy," Economics Bulletin, AccessEcon, vol. 30(4), pages 2802-2816.
- Silvia Gómez Soler, 2012. "Organized Crime, Foreign Investment and Economic Growth," REVISTA ECONOMÍA & REGIÓN, UNIVERSIDAD TECNOLÓGICA DE BOLÍVAR.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.