Tough on criminal wealth? Exploring the link between organized crime’s asset confiscation and regional entrepreneurship

Bibliographic Data

ID14869283
AuthorsElisa Operti (0000-0002-4788-5534, CY Cergy Paris Université, corresponding author)
Year2018
Volume51
Issue2
Pages321-335
Publication date2018-08-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSmall Business Economics (JOURNAL)
Journal identifiersISSN: 0921-898X • E-ISSN: 1573-0913
PublisherSpringer Science and Business Media LLC (PUBLISHER)
DOI10.1007/s11187-018-0003-y
OpenAlexW2790242616
LanguageEN
Citations received10
References cited53

This paper addresses the question “How does the fight against organized crime affect regional entrepreneurship?” We focus on asset confiscation in relation to alleged connections of their owners with organized crime, a highly debated policy measure against organized crime. Extending work on institutions and regional entrepreneurship, we propose that confiscation has contrasting effects on regional entries. On the one hand, confiscation of economic assets associated with criminal organizations’ legitimate activities in a region reduces competition and triggers renewal, fostering new entries. On the other hand, seizure of criminal organizations’ operational assets weakens their ability to exercise sovereignty, creating an institutional vacuum that lowers founding rates. Our results, based on a longitudinal study of Italian provinces between 2009 and 2013, provide support for both hypotheses. We also find that the negative effect associated with the confiscation of operational assets is mitigated when local governments have policies facilitating asset redeployment

Asset (computer security · Business · Competition (biology · Computer security · Confiscation · Economics · Entrepreneurship · Market economy · Organised crime · Political science · Corruption and Economic Development · Crime, Illicit Activities, and Governance · Italy: Economic History and Contemporary Issues · Law · Finance

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Open DOISci-HubOpen Access