Fake Products, Real Effects: Evidence from Special 301 Actions

86 Pages Posted: 29 Aug 2018 Last revised: 22 Jan 2022

See all articles by Mehmet Canayaz

Mehmet Canayaz

Pennsylvania State University - Smeal College of Business

Umit G. Gurun

University of Texas at Dallas

Date Written: December 10, 2021

Abstract

We study how U.S. government’s anti-counterfeiting enforcements through Special 301 Reports influence U.S. businesses. We show that anti-counterfeiting enforcements in foreign countries improve U.S. firms’ sales, profitability, and valuations. Firms significantly reduce capital and research and development investments when their brands and products are protected from counterfeiting activities. Anti-counterfeiting enforcements also improve brand asset value, brand profitability, brand inventiveness, market penetration, and customer loyalty.

Keywords: Special 301 Reports, counterfeit products, product market competition, brand value.

JEL Classification: G15, G34, G31, M41

Suggested Citation

Canayaz, Mehmet and Gurun, Umit G., Fake Products, Real Effects: Evidence from Special 301 Actions (December 10, 2021). Available at SSRN: https://ssrn.com/abstract=3231962 or http://dx.doi.org/10.2139/ssrn.3231962

Mehmet Canayaz (Contact Author)

Pennsylvania State University - Smeal College of Business ( email )

University Park, PA 16802
United States

Umit G. Gurun

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

HOME PAGE: http://www.umitgurun.com

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