The aim of this paper is to provide empirical evidence on the channels through which organized crime affects economic activity and imposes economic costs in developed areas. The presence of organized crime is typically conceived as an obstacle to the economic development and extant research has analyzed the economic origins as well as the economic costs of organized crime. Overall, there is consensus around the idea that organized crime negatively affects the economic performance of an area. Using Apulia and Basilicata as research setting, Pinotti (2015a) estimates a 16% drop in GDP as a consequence of the presence of organized crime. Although the estimation of the economic costs imposed by the presence of the organized crime is of prominent importance to advance our knowledge in this research area, even more intriguing – and surprisingly less investigated – is the understanding of the channels through which organized crime hampers the economic development and imposes economic costs on the society. Prior research that looked at the analysis of organized crime from this perspective found evidence of a variety of channels through which organized crime is detrimental for the growth potential of the economy. Specifically, Pinotti (2013) shows that the presence of organized crime reduces the quality of the political class, and in the same vein, De Fao and De Luca (2013) suggest that organized crime reduces electoral competition. […]
Key-Words: Etica e responsabilità sociale
