Why Do Countries Export Fakes?

The Role of Governance Frameworks, Enforcement and Socio-economic Factors

image of Why Do Countries Export Fakes?

This study provides an in-depth exploration of a series of factors that can explain a country’s propensity to export fake goods. The analysis explores the role and interplay of macroeconomic factors, governance variables, and the presence of Free Trade Zones, logistics facilities and trade facilitation. In addition, it analyses the role corrruption and enforcement of IP play in facilitating trade in counterfeit products, and provides data on these links.



Key drivers of trade in fakes

This chapter presents the quantitative investigation into the factors that determine economies’ propensities to become active actors in the trade in fake goods. It determines five sets of indicators that shape economies’ propensities to become important actors in this trade: production facilities, governance, free trade zones, trade facilitation policies and logistics capacities and facilities. In addition, poor governance (i.e. high levels of corruption and poor enforcement of intellectual property rights) was identified as a crucial element that amplifies the effects of other drivers.


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