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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 finds 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 find homogeneous groups of regions on counterfeiting index.

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