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Discussion Paper Details

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Title: Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs

Author(s): Roberto Ganau and Andrés Rodríguez-Pose

Publication Date: July 2017

Keyword(s): externalities, Industrial clustering, Italy, organized crime and total factor productivity

Programme Area(s): International Trade and Regional Economics

Abstract: We examine whether organized crime affects firms' performance (defined using Total Factor Productivity growth) both directly and indirectly, by downsizing the positive externalities arising from the geographic concentration of (intra- and inter-industry) market-related firms. The analysis uses a large sample of Italian small- and medium-sized manufacturing firms over the period 2010-2013. The results highlight the negative direct effects of organized crime on firms' productivity growth. Any positive effect derived from industrial clustering is thoroughly debilitated by a strong presence of organized crime, and the negative moderation effect of organized crime on productivity growth is greater for smaller than for larger firms.

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Bibliographic Reference

Ganau, R and Rodríguez-Pose, A. 2017. 'Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12140