Date of This Version
10-9-2019
Abstract
We use a unique and unexplored dataset to investigate the determinants and effects of mafia firms in Italy. Mafia may use several tools to expand its firms. However, in this paper, we show that they prefer political corruption to violence to expand mafia firms. In particular, they use the latter more to build up their reputation in new established regions. Mafia firms hamper entrepreneurial activity but they can have beneficial effects on unemployment if mafia firms add to not substitute current economic activities. Policy makers should take account of this twofold effects of mafia firms.
Recommended Citation
Alfano, Maria Rosaria; Cantabene, Claudia; and Silipo, Damiano Bruno, "Mafia Firms and Aftermaths" (October 09, 2019). Fondazione Eni Enrico Mattei Working Papers. Paper 1280.
https://services.bepress.com/feem/paper1280