An empirical analysis of organized crime, corruption and economic growth

Rana, MP; Neanidis, KC; Blackbourn, K

Abstract

In a companion study, Blackburn et al. (Econ Theory Bull, 2017), we have developed a theoretical framework for studying interactions between organized crime and corruption, with the view of examining the combined effects of these phenomena on economic growth. The analysis therein illustrates that organized crime has a negative effect on growth, but that the magnitude of the effect may be either enhanced or mitigated in the presence of corruption. In this paper we tackle the ambiguity produced by the coexistence of the two illicit activities with an empirical investigation using a panel of Italian regions for the period 1983–2009. We find that organized crime distorts growth less when it coexists with corruption and show our results to be robust to different specifications, measures of organized crime, and estimation techniques.

Citation

Rana, M., Neanidis, K., & Blackbourn, K. (2017). An empirical analysis of organized crime, corruption and economic growth. Annals of Finance, 13(3), 273-298. https://doi.org/10.1007/s10436-017-0299-7

• Journal Article Type: Article
• Online Publication Date: Jun 9, 2017
• Publication Date: Apr 1, 2017
• Deposit Date: Jan 19, 2018
• Publicly Available Date: Jan 19, 2018
• Journal: Annals of Finance
• Print ISSN: 1614-2446
• Electronic ISSN: 1614-2454
• Publisher: Springer Verlag
• Volume: 13
• Issue: 3
• Pages: 273-298
• DOI: https://doi.org/10.1007/s10436-017-0299-7
• Publisher URL: http://dx.doi.org/10.1007/s10436-017-0299-7
• Related Public URLs: https://link.springer.com/journal/10436