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The hidden economic losses of counterfeiting in the EU

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  • Moscone, Francesco
  • Kastrinaki, Zafeira

Abstract

Counterfeiting imposes substantial economic costs on the European Union, far exceeding the direct losses sustained by targeted industries. This study estimates the economy-wide impact of counterfeiting in five key product groups (clothing, cosmetics, toys, pharmaceuticals, and tobacco) by treating lost legitimate sales as reductions in final demand. Using a multi-regional input-output (MRIO) framework, the analysis traces how these losses spread through EU supply chains, reducing gross value added (GVA), employment, and household consumption.

Suggested Citation

  • Moscone, Francesco & Kastrinaki, Zafeira, 2026. "The hidden economic losses of counterfeiting in the EU," Research in Economics, Elsevier, vol. 80(2).
    • Handle: RePEc:eee:reecon:v:80:y:2026:i:2:s1090944326000153
    DOI: 10.1016/j.rie.2026.101127
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