Economic structure and vulnerability to organised crime: Evidence from Sicily

Abstract

The economic analysis of organized crime suggests that some economic activities are particularly vulnerable to penetration by criminal organizations. This paper provides an analysis of the structure of the Sicilian economy and shows that, when compared to other Italian regions, it is characterized by a disproportionate presence of such activities. In particular, the economy of Sicily appears characterized by: (i) a large dimension of traditional sectors, such as the Construction sector, which also has a strong territorial specificity; (ii) a large presence of small firms; (iii) a low level of technology; (iii) a large public sector. The joint presence of these features creates fertile soil for the typical activities of organized crime, such as extortion and cartel enforcement. Hence, we propose an alternative explanation of the persistence of organized crime with respect to explanations based on cultural and social factors.

The territorial expansion of mafia-type organized crime. The case of the Italian mafia in Germany

“…Here, we are dealing chiefly with the economic, cultural-relational and political-institutional spheres. As regards the legal economy, certain sectors are more vulnerable to mafia infiltration, in particular: i) those of the traditional production system, with their low technological level and predominance of small-scale enterprises that should compete on the local market, like construction (Lavezzi, 2008;Lupo, 2010); ii) the sectors subject to public regulation (e.g. competitive bidding), where the mafia puts pressure on policy-makers and gain advantageous position in accessing public resources.…”

Resisting the extortion racket: an empirical analysis

“…9 This question echoes the question raised by Schelling (1971): why some firms' are victims of extortion? See Lavezzi (2008) for an empirical assessment. 10 In a companion paper (Battisti et al , 2014) we analyze the consequences for the economic performance for a firm joining AP.…”

Accrual management as an indication of money laundering through legally registered Mafia firms in Italy

“…construction), low international competition and strong public regulation (e.g. competitive bidding) which allows the Mafia to put pressure on policy-makers and gain advantageous positions in accessing public resources (Daniele and Marani, 2008;Lavezzi, 2008;Riccardi, 2014;Sciarrone and Storti, 2014). …”