Counterfeiting in Italian regions: an empirical analysis based on new data
| Published date | 30 September 2014 |
| Date | 30 September 2014 |
| DOI | https://doi.org/10.1108/JFC-01-2014-0001 |
| Pages | 400-410 |
| Author | Cosimo Magazzino,Mantovani Michela |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Counterfeiting in Italian regions:
an empirical analysis based on
new data
Cosimo Magazzino
Department of Political Sciences, Roma Tre University, Rome, Italy, and
Mantovani Michela
Mediterranea University of Reggio Calabria, Reggio Calabria, Italy
Abstract
Purpose – The purpose of this paper is to examine the counterfeiting process in Italy, at a subnational
level.
Design/methodology/approach – The paper uses panel data estimators and mixture models
regression.
Findings – The paper nds that homogeneous clusters of regions could be derived, as a result of
economic and geographical reasons. Moreover, household and public administration expenditure,
indirect taxation, foreigners/population ratio and the number of ports have a positive impact on the
counterfeiting diffusion index.
Practical implications – The paper is practical as a source of reference in contrasting counterfeiting
process.
Originality/value – The paper uses new data applying recent econometric techniques to nd
homogeneous groups of regions on counterfeiting index.
Keywords Counterfeiting, Panel data, Italian regions
Paper type Research paper
1. Introduction
Counterfeiting is ultimately an infringement of the legal rights of an owner of
intellectual property (IP). Technically, the English term “counterfeiting” only refers to
specic cases of trademark infringement. However, in practice, the term is allowed to
encompass any making of a product which so closely imitates the appearance of the
product of another as to mislead a consumer that it is the product of another (OECD,
1998). Moreover, government efforts to stabilize the economy and stimulate economic
growth, trade and employment must include the critical and pervasive role that IP
protection plays in driving innovation, development and jobs. According to the
“conservative” estimates of Frontier Economics based on 2008 data, the total global
economic value of counterfeit and pirated products is as much as $650 billion every year
(Frontier Economics (FE), 2011), with a cost for G20 governments and consumers of
$125 billion every year.
Counterfeiting clearly impacts legitimate businesses, causing lost sales, lower prots
and loss of brand trust and value. However, in an interconnected economy, consumers
JEL classication – C23; H70; K14
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
JFC
21,4
400
Journal of Financial Crime
Vol. 21 No. 4,
pp. 400-410
© Emerald Group Publishing Limited
1359-0790
DOI 10.1108/JFC-01-2014-0001
To continue reading
Request your trial