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The Burden of Crime on Development and FDI in Southern Italy


Crime imposes various costs on society - for prevention, for response, the consequences for the victims themselves, etc. But there are also other kinds of costs that are indirect, and such as lost investment, lost jobs and fewer opportunities for development. In the case of Italy, the historical presence of organised crime in the southern regions represents a significant economic burden. Economists have tried to estimate the costs and the economic and social consequences of crime. Studies clearly show that high levels of crime tends to affect economic outcomes negatively, creating notable distortions in local markets and a business climate that is unfavourable to foreign and national investment.