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Organized crime and labour productivity in the Mezzogiorno: an application of the "Kaldor-Verdoorn" model

  • Centorrino M.
  • Ofria F.

This paper verifies if the organised crime ("camorra", "cosa nostra", "'ndrangheta" and "sacra corona unita") has had a negative impact on the growth rate of labour productivity in Italian Regions mostly affected by such criminal phenomena (Calabria, Campania, Puglia and Sicily), during the period 1983-2005. The originality of this study, in comparison with previous ones on this subject, is the insertion of a "proxy" on criminal phenomena (that is the ratio between the homicide committed by "mafia, camorra, cosa nostra, 'ndrangheta and sacra corona unita" and the number of inhabitants in a particular Region) within the known model "Kaldor-Verdoor" that combines the growth rate of labour productivity and other economic variables. The econometric results regarding Southern Regions prove the negative effect of the variable "crime" on the growth rate of labour productivity, particularly in non-tradable sectors. It confirms the need of specific State policies in order to sustain the growth of labour productivity in the Mezzogiorno and to oppose the criminal phenomenon that hinders it.

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Article provided by Società editrice il Mulino in its journal Rivista economica del Mezzogiorno.

Volume (Year): (2008)
Issue (Month): 1 ()
Pages: 163-188

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Handle: RePEc:mul:jqyfkm:doi:10.1432/27151:y:2008:i:1:p:163-188
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  1. Ofria Ferdinando, 1998. "L'analisi empirica della produttività nell'industria italiana e divari territoriali: una rassegna della letteratura," L'industria, Società editrice il Mulino, issue 1, pages 81-110.
  2. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
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  4. Daniele, Vittorio, 2007. "Criminalità e investimenti esteri. Un’analisi per le province italiane
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  5. Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
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  7. Kaldor, Nicholas, 1970. "The Case for Regional Policies," Scottish Journal of Political Economy, Scottish Economic Society, vol. 17(3), pages 337-48, November.
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  11. Bairam, Erkin I, 1987. "The Verdoorn Law, Returns to Scale and Industrial Growth: A Review of the Literature," Australian Economic Papers, Wiley Blackwell, vol. 26(48), pages 20-42, June.
  12. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  13. Rowthorn, R E, 1975. "A Reply to Lord Kaldor's Comment," Economic Journal, Royal Economic Society, vol. 85(340), pages 897-901, December.
  14. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  15. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
  16. 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.
  17. Kaldor, Nicholas, 1975. "Economic Growth and the Verdoorn Law-A Comment on Mr. Rowthorn's Article," Economic Journal, Royal Economic Society, vol. 85(340), pages 891-96, December.
  18. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-55, December.
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