| Abstract: | 
This research attempts to explain the large differences in the early diffusion 
of the mafia across different areas of Sicily. We advance the hypothesis that, 
after the demise of Sicilian feudalism, the lack of publicly provided 
property-right protection from widespread banditry favored the development of 
a florid market for private protection and the emergence of a cartel of 
protection providers: the mafia. This would especially be the case in those 
areas (prevalently concentrated in the Western part of the island) 
characterized by the production and commercialization of sulphur and citrus 
fruits, Sicily's most valuable export goods whose international demand was 
soaring at the time. We test this hypothesis combining data on the early 
incidence of mafia across Sicilian municipalities and on the distribution of 
sulphur reserves, land suitability for the cultivation of citrus fruits, 
distance from the main commercial ports, and a variety of other geographical 
controls. Our empirical findings provide support for the proposed hypothesis 
documenting, in particular, a significant impact of sulphur extraction, 
terrain ruggedness, and distance from Palermo's port on mafia's early 
diffusion. |