Criminalità e investimenti esteri. Un’analisi per le province italiane

This paper estimates the effects of organized crime on FDI inflows in 103 Italian Provinces in the period 2004-06. We measure the presence of "organized crime" at provincial level through several indicators, based on data for different kinds of crimes: extortions; "criminal association, included mafia" (art. 416 and 416 bis Italian Penal code); attempts; crime of arsons. Several control variables are used, included a proxy for (financial) investment incentives provided by public sectors. Estimations suggests that FDI inflows are influenced by different variables. In particular results shows as the number of extortions and the number of persons denounced for "crime association" are significantly and negatively correlated with FDI inflows. Our analysis suggests that the presence of organized crime is a strong disincentive for foreign investors, in particular in the less developed Italian provinces.