JOURNAL ARTICLE

Organized Crime and Firms: Evidence from Antimafia Enforcement Actions.

  • Published In: Management Science (INFORMS), 2024, v. 70, n. 10. P. 6569 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Slutzky, Pablo; Zeume, Stefan 3 of 3

Abstract

This article investigates the impact of organized crime, specifically the Italian mafia, on firms and market competition by exploiting staggered municipality-level antimafia enforcement actions (asset confiscations) in Italy from 1995 to 2015. The study finds that these enforcement actions weaken mafia influence, leading to increased competition among firms, higher turnover rates, and more competitive public procurement processes. Incumbent firms that survive the weakening of organized crime tend to shrink, especially those in the nontradable sector, while firms in the tradable sector benefit from enforcement actions. The analysis controls for various confounding factors and rules out alternative explanations such as strengthened law enforcement or political cycles, concluding that organized crime acts as a barrier to entry and distorts local economic activity.

Additional Information

  • Source:Management Science (INFORMS). 2024/10, Vol. 70, Issue 10, p6569
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2024
  • ISSN:0025-1909
  • DOI:10.1287/mnsc.2021.00859
  • Accession Number:180138829
  • Copyright Statement:Copyright of Management Science (INFORMS) is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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