Industrial clusters, organized crime and productivity growth in Italian SMEs

Ganau, Roberto and Rodríguez-Pose, Andrés ORCID: 0000-0002-8041-0856 (2017) Industrial clusters, organized crime and productivity growth in Italian SMEs. Journal of Regional Science. ISSN 0022-4146

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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.

Item Type:	Article
Official URL:	http://onlinelibrary.wiley.com/journal/10.1111/(IS...
Additional Information:	© 2017 Wiley Periodicals, Inc.
Divisions:	LSE
Subjects:	H Social Sciences > HV Social pathology. Social and public welfare. Criminology
Date Deposited:	26 Sep 2017 10:20
Last Modified:	16 Apr 2024 00:51
URI:	http://eprints.lse.ac.uk/id/eprint/84291

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