Organized Crime and Foreign Direct Investment: The Italian Case
30 Pages Posted: 17 Feb 2008
There are 2 versions of this paper
Organized Crime and Foreign Direct Investment: The Italian Case
Organized Crime and Foreign Direct Investment: The Italian Case
Date Written: January 2008
Abstract
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.
Keywords: FDI determinants, Italy, Mezzogiorno, crime, regional attractiveness
JEL Classification: F23, R30, R38
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
European Regional Policies in Light of Recent Location Theories
By Diego Puga
-
Unemployment Clusters Across European Regions and Countries
By Diego Puga and Henry G. Overman
-
Regional Policy in the Global Economy: Insights from New Economic Geography
-
Multinationals' Location Choice, Agglomeration Economies and Public Incentives
By Holger Görg, Salvador Barrios, ...
-
Acquisition Versus Greenfield Investment: The Location of Foreign Manufacturers in Italy
-
Location Choices of Multinational Firms in Europe: The Role of National Boundaries and EU Policy
By Roberto Basile, Davide Castellani, ...
-
Regional Income Convergence in the Enlarged Europe, 1995-2000: A Spatial Econometric Perspective