Abstract
This study uses a unique international database on customs seizures between the years 2011 to 2013 and matched corporate statistics to study the impacts of counterfeiting on authentic corporations’ investment and revenues. Applying the matched sampling combined with panel analyses, we attempt to estimate the effects counterfeit incidences have on corporate research investment and on firm sales and revenues (“sales displacement”) in various industries. We find an overall negative effects on the R&D and net sales across various regression specifications, with a rare positive effect documented in the regression for the broad sector of tools, materials, and vehicles (HS code 8)
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