Public Spending and Organised Crime in Italy - A Panel-Data Analysis Over the Period 1997-2003 (Spesa Pubblica E Criminalità Organizzata in Italia Evidenza Empirica Su Dati Panel Nel Periodo 1997-2003)

Abstract

This work presents original results regarding the relationship between economic life and organised crime in Italy. This empirical study is underpinned by some theoretical insights drawn from conflict and rent-seeking theories. Then the paper presents a panel analysis including the twenty Italian regions over the period 1997-2003. The results show that: (a) a significant positive association does exist between investments in real estate sector and the index of organised crime; (b) a significant positive association does exist between public investments and the index of organised crime index; (c) a significant negative association does exist between social protection expenditures and the index of organised crime; (d) a significant negative association does exist between investments in private investments and the index of organised crime.