IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

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

  • Daniele, Vittorio
  • Marani, Ugo

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.

If 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.

File URL: http://www.sciencedirect.com/science/article/B6V97-4YXP15D-1/2/a7dfd9bede7fcf282752a05acdb7d5ce
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

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

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

as
in new window

Handle: RePEc:eee:poleco:v:27:y:2011:i:1:p:132-142
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505544

References listed on IDEAS
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.:

as in new window
  1. Devereux, Michael P. & Griffith, Rachel & Simpson, Helen, 2007. "Firm location decisions, regional grants and agglomeration externalities," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 413-435, April.
  2. Matthieu Crozet & Thierry Mayer & Jean-Louis Mucchielli, 2004. "How do firms agglomerate? A study of FDI in france," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
  3. Salvador Barrios & Holger Görg & Eric Strobl, 2006. "Multinationals' Location Choice, Agglomeration Economies, and Public Incentives," International Regional Science Review, , vol. 29(1), pages 81-107, January.
  4. 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.
  5. Shang-Jin Wei, 1997. "How Taxing is Corruption on International Investors?," NBER Working Papers 6030, National Bureau of Economic Research, Inc.
  6. Daniele V. & Marani U., 2008. "The effect of organized crime on foreign investments: an empirical analysis for the Italian Provinces," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1, pages 189-218.
  7. Agnès Bénassy-Quéré & Maylis Coupet & Thierry Mayer, 2007. "Institutional Determinants of Foreign Direct Investment," The World Economy, Wiley Blackwell, vol. 30(5), pages 764-782, 05.
  8. Del Monte, Alfredo & Papagni, Erasmo, 2007. "The determinants of corruption in Italy: Regional panel data analysis," European Journal of Political Economy, Elsevier, vol. 23(2), pages 379-396, June.
  9. 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.
  10. Daniele V., 2005. "Perché le imprese estere non investono al Sud?," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 795-818.
  11. Mayer, Thierry, 2004. "Where do foreign firms locate in France and why?," EIB Papers 7/2004, European Investment Bank, Economics Department.
  12. Marselli, Riccardo & Vannini, Marco, 1997. "Estimating a crime equation in the presence of organized crime: Evidence from Italy," International Review of Law and Economics, Elsevier, vol. 17(1), pages 89-113, March.
  13. 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.
  14. Daniele, Vittorio, 2007. "Criminalità e investimenti esteri. Un’analisi per le province italiane
    [The effect of organized crime on Foreign Investments. An Empirical Analysis for the Italian Provinces]
    ," MPRA Paper 6417, University Library of Munich, Germany.
  15. Herbert Dawid & Gustav Feichtinger & Andreas Novak, 2001. "Extortion as an Obstacle to Economic Growth: A Dynamic Game Analysis," Game Theory and Information 0012003, EconWPA.
  16. 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).
  17. Broadman, Harry G. & Recanatini, Francesca, 2000. "Seeds of corruption - Do market institutions matter?," Policy Research Working Paper Series 2368, The World Bank.
  18. Broadman, Harry G. & Recanatini, Francesca, 2001. "Where has all the foreign investment gone in Russia?," Policy Research Working Paper Series 2640, The World Bank.
  19. Christian Daude & Ernesto Stein, 2007. "The Quality Of Institutions And Foreign Direct Investment," Economics and Politics, Wiley Blackwell, vol. 19(3), pages 317-344, November.
  20. Del Monte, Alfredo & Papagni, Erasmo, 2001. "Public expenditure, corruption, and economic growth: the case of Italy," European Journal of Political Economy, Elsevier, vol. 17(1), pages 1-16, March.
  21. Habib, M. & Zurawicki, L., 2001. "Country-level investments and the effect of corruption -- some empirical evidence," International Business Review, Elsevier, vol. 10(6), pages 687-700, December.
  22. 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).
  23. Paolo Buonanno, 2003. "The Socioeconomic Determinants of Crime. A Review of the Literature," Working Papers 63, University of Milano-Bicocca, Department of Economics, revised Nov 2003.
  24. Lionel Artige & Rosella Nicolini, 2005. "Evidence of the Determinants of Foreign Direct Investment: The Case of Three European Regions," Working Papers 251, Barcelona Graduate School of Economics.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:27:y:2011:i:1:p:132-142. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.