IDEAS home Printed from https://ideas.repec.org/a/wly/econjl/v125y2015i586pf203-f232.html
   My bibliography  Save this article

The Economic Costs of Organised Crime: Evidence from Southern Italy

Author

Listed:
  • Paolo Pinotti

Abstract

I examine the post†war economic development of two regions in southern Italy exposed to mafia activity after the 1970s and apply synthetic control methods to estimate their economic performance in the absence of organised crime. The comparison of actual and counterfactual development shows that the presence of mafia lowers GDP per capita by 16%. Evidence from electricity consumption and growth accounting suggests that lower GDP reflects a net loss of economic activity, due to the substitution of private capital with less productive public investment, rather than a mere reallocation of resources from the official to the unofficial sector.

Suggested Citation

  • Paolo Pinotti, 2015. "The Economic Costs of Organised Crime: Evidence from Southern Italy," Economic Journal, Royal Economic Society, vol. 125(586), pages 203-232, August.
  • Handle: RePEc:wly:econjl:v:125:y:2015:i:586:p:f203-f232
    DOI: 10.1111/ecoj.12235
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ecoj.12235
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:econjl:v:125:y:2015:i:586:p:f203-f232. 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: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/resssea.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.