Mafia Firms and Aftermaths
33 Pages Posted: 25 Oct 2019
Date Written: October 25, 2019
We use a unique and unexplored dataset to investigate the determinants and effects of mafia firms in Italy. Mafia may use several tools to expand its firms. However, in this paper, we show that they prefer political corruption to violence to expand mafia firms. In particular, they use the latter more to build up their reputation in new established regions. Mafia firms hamper entrepreneurial activity but they can have beneficial effects on unemployment if mafia firms add to not substitute current economic activities. Policy makers should take account of this twofold effects of mafia firms.
Keywords: Organized Crime, Mafia Firm, Mafia and Development
JEL Classification: D02, K14, L11
Suggested Citation: Suggested Citation