Fake Products, Real Effects: Evidence from Special 301 Actions
86 Pages Posted: 29 Aug 2018 Last revised: 22 Jan 2022
Date Written: December 10, 2021
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: Suggested Citation