Organized Crime in Italy: An Economic Analysis

Organized crime affects the socio-economic development of the areas in which it is rooted through several channels. However, analysing these effects is difficult, largely because it is extremely hard to observe and thus confidently measure the extent of mafia presence in a given area. On the basis of the most recent economic literature and with the aid of new information sources, this paper ( i ) analyses the spread of organized crime in Italy; ( ii ) describes the institutional environment that may have favoured the birth of mafias and their subsequent spread beyond traditional borders; ( iii ) examines the impact on economic growth and the different channels through which these effects occur.