The Cost of Protection Racket in Sicily

Global Crime, 9(3): 221-240, 2008. DOI: 10.1080/17440570802254338

Posted: 27 Sep 2012 Last revised: 2 Nov 2017

See all articles by Maurizio Lisciandra

Maurizio Lisciandra

University of Messina - Department of Economics

Adam Asmundo

University of Palermo - d/SEAS

Date Written: 2008

Abstract

The purpose of this paper is to estimate the current cost of protection rackets in Sicily. By means of a database constructed on judicial evidence, it has been possible to come up with an estimate of the average and total costs of the protection-money system, as well as finding out in which sectors of economic activity and in which provinces is most pervasive. The average monthly payment is approximately 600 euros per business, with stronger effects in those areas with a relatively more traditional economic structure. As a whole, in monetary terms, the protection racket in Sicily accounts for over 1.4% of gross regional product. Finally, the paper supports the hypothesis that in most cases, the pervasive presence of the Mafia represents a considerable constraint on business growth.

Keywords: cost of crime, racket, extortion, organized crime

JEL Classification: K42

Suggested Citation

Lisciandra, Maurizio and Asmundo, Adam, The Cost of Protection Racket in Sicily (2008). Global Crime, 9(3): 221-240, 2008. DOI: 10.1080/17440570802254338, Available at SSRN: https://ssrn.com/abstract=2152975

Maurizio Lisciandra (Contact Author)

University of Messina - Department of Economics ( email )

Piazza Pugliatti 1
Messina, 98122
Italy
+39 (0)906764620 (Phone)

HOME PAGE: http://https://sites.google.com/site/mlisciandra/

Adam Asmundo

University of Palermo - d/SEAS ( email )

Viale delle Scienze, edificio 13
Palermo, 90124
Italy
+39917891893 (Phone)

HOME PAGE: http://www.adamasmundo.it

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