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Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs

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  • Roberto Ganau
  • Andres Rodrigues-Pose

Abstract

We examine whether organized crime affects firms' performance (defined using Total Factor Productivity growth) both directly and indirectly, by downsizing the positive externalities arising from the geographic concentration of (intra- and inter-industry) market-related firms. The analysis uses a large sample of Italian small- and medium-sized manufacturing firms over the period 2010-2013. The results highlight the negative direct effects of organized crime on firms' productivity growth. Any positive effect derived from industrial clustering is thoroughly debilitated by a strong presence of organized crime, and the negative moderation effect of organized crime on productivity growth is greater for smaller than for larger firms.

Suggested Citation

  • Roberto Ganau & Andres Rodrigues-Pose, 2017. "Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs," Papers in Evolutionary Economic Geography (PEEG) 1719, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2017.
  • Handle: RePEc:egu:wpaper:1719
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    Cited by:

    1. Hassink, Robert & Gong, Huiwen, 2017. "Sketching the Contours of an Integrative Paradigm of Economic Geography," Papers in Innovation Studies 2017/12, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    2. repec:spt:apfiba:v:8:y:2018:i:2:f:8_2_4 is not listed on IDEAS

    More about this item

    Keywords

    Total Factor Productivity; Organized crime; Industrial clustering; Externalities; Italy;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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