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Organised Crime and Technology

Author

Listed:
  • Mustafa Caglayan

    (Heriot Watt University, School of Social Sciences, Edinburgh, EH144AS, UK)

  • Alessandro Flamini

    (University of Pavia)

  • Babak Jahanshahi

    (University of Edinburgh)

Abstract

We show that mafias harm technological development. We provide evidence that forced resettlement of bosses promoted mafias rooting in northern Italy. With forced resettlement as exogenous source of variation, we unveil that mafias cause a reduction in technology levels. Moving to a technology generating flow -innovation- we demonstrate that mafias stifle innovation. We argue that without mafia, Nature selects agents for their innovation capacity. Instead, with mafia, agents face an alternative strategy: relate with mafia; this strategy, infringing property rights and competition, hinders innovation. Using evolutionary dynamics, we show that while mafias decrease innovation, proper sanctions/indemnities can address the problem.

Suggested Citation

  • Mustafa Caglayan & Alessandro Flamini & Babak Jahanshahi, 2019. "Organised Crime and Technology," SPRU Working Paper Series 2019-22, SPRU - Science Policy Research Unit, University of Sussex Business School.
    • Handle: RePEc:sru:ssewps:2019-22
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    Citations

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    Cited by:

    1. Marco Dugato & Francesco Calderoni & Gian Maria Campedelli, 2020. "Measuring Organised Crime Presence at the Municipal Level," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 237-261, January.
    2. Fortuna Casoria & Marianna Marino & Pierpaolo Parrotta & Davide Sala, 2019. "Local Government and Innovation: the case of Italian provinces," Working Papers halshs-02278092, HAL.
    3. Lin, Xifen & Wu, Wanqiang & Lan, Huanqi & Ma, Yong, 2024. "The impact of anti-organized crime on business environment: Evidence from China's anti-Mafia campaign," International Review of Economics & Finance, Elsevier, vol. 95(C).
    4. Mustafa Caglayan & Alessandro Flamini & Babak Jahanshahi, 2017. "Organized Crime and Technology," DEM Working Papers Series 136, University of Pavia, Department of Economics and Management.
    5. Gaetano Perone, 2020. "The impact of agribusiness crimes on food prices: evidence from Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 877-909, October.
    6. Alfredo Del Monte, 2016. "Le cause della differente diffusione della criminalit? organizzata nel Mezzogiorno," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2016(118-119-1), pages 271-311.
    7. Giovanni Bernardo & Irene Brunetti & Mehmet Pinar & Thanasis Stengos, 2021. "Measuring the presence of organized crime across Italian provinces: a sensitivity analysis," European Journal of Law and Economics, Springer, vol. 51(1), pages 31-95, February.

    More about this item

    Keywords

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    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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