Organized Crime and Foreign Direct Investment: the Italian Case
The paper estimates the effects of organized crime on FDI inflows in 103 Italian provinces in the period 2004-06. The presence of organized crime at a provincial level is quantified through several indicators, based on data for different kinds of crimes: extortion; association for criminal purposes, including mafia (Art. 416 and 416 bis of the Italian Penal Code); attacks; arson. Several control variables are used, included a proxy for (financial) investment incentives provided by public sectors. Estimation suggests that FDI inflows are influenced by different variables. Our results show that the extent of extortion and the number of persons denounced for "criminal association" are significantly and negatively correlated with FDI inflows. Finally, our analysis suggests the presence of organized crime is a strong disincentive for foreign investors, particularly in the less developed Italian provinces.
|Date of creation:||29 Jan 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
- 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).
- 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.
- Crozet, M. & Mayer, T. & Micchielli, J.L., 2000.
"How Do Firms Agglomerate? A Study of FDI in France?,"
Papiers d'Economie MathÃ©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.
- Matthieu Crozet & Thierry Mayer & Jean-Louis Mucchielli, 2004. "How do firms agglomerate? A study of FDI in france," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01019657, HAL.
- 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.
- Matthieu Crozet & Thierry Mayer & Jean-Louis Mucchielli, 2004. "How do firms Agglomerate? A Study of FDI in France," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00268770, HAL.
- 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.
- 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.
- Uppenberg, Kristian & Riess, Armin, 2004. "Determinants and growth effects of foreign direct investment," EIB Papers 3/2004, European Investment Bank, Economics Department.
- 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.
- Roberto Basile & Luigi Benfratello & Davide Castellani, 2005. "Attracting Foreign Investments in Europe - are Italian Regions Doomed?," ERSA conference papers ersa05p148, European Regional Science Association.
- 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.
- 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.
- Konings, Jozef, 2004. "The employment effects of foreign direct investment," EIB Papers 4/2004, European Investment Bank, Economics Department.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- 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).
- 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.
- 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.
- Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
- 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.
- Daniele V., 2005. "Perché le imprese estere non investono al Sud?," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 795-818.
- N/A, 2004. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 187(1), pages 8-35, January.
- 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.
- 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).
- Salvador Barrios & Holger GÃ¶rg & Eric Strobl, 2006. "Multinationals' Location Choice, Agglomeration Economies, and Public Incentives," International Regional Science Review, , vol. 29(1), pages 81-107, January.
- N/A, 2004. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 189(1), pages 8-36, July.
- Aikaterini Kokkinou & Ioannis Psycharis, 2004. "Foreign Direct Investments, Regional Incentives and Regional Attractiveness in Greece," ERSA conference papers ersa04p559, European Regional Science Association.
- Taylor, William E., 1980. "Small sample considerations in estimation from panel data," Journal of Econometrics, Elsevier, vol. 13(2), pages 203-223, June.
- Michael Devereux & Rachel Griffith & Helen Simpson, 2004. "Agglomeration, regional grants and firm location," IFS Working Papers W04/06, Institute for Fiscal Studies.
- 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.
- 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.
- 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.
- Mayer, Thierry, 2004. "Where do foreign firms locate in France and why?," EIB Papers 7/2004, European Investment Bank, Economics Department.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:7279. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.