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The Specialties of the Pharmaceutical Value Chains in Hungary

Author

Listed:
  • Katalin Antalóczy

    (Foreign Trade Department of the Budapest Business School, Budapest, Hungary)

  • Tamás Gáspár

    (Foreign Trade Department of the Budapest Business School, Budapest, Hungary)

  • Magdolna Sass

    (Budapest Business School and Centre for Economic and Regional Studies, Budapest, Hungary)

Abstract

The length, the composition, the quality and the characteristics of value chains essentially determine the corporate as well as the macroeconomic performance of the economic sectors and industries. Hungary has a strong tradition in the pharmaceutical industry but its dynamising impact seems to be limited on the economy. The aim of this paper is to detect and reveal the specialties of the Hungarian pharmaceutical industry both in space and time by a value chain analysis. Our method is partly quantitative, we use an input-output analysis; and partly qualitative, relying on interviews with the representatives of pharmaceutical companies. We found that the Hungarian pharma value chain is really special, having relatively short backward and forward linkages with mainly indirect value-added contribution as well as high import content of exports. However, our company interviews revealed the fundamental differences between original and generic value chains – i.e. again a pharma industry-specific distinction. Having relatively little original and more substantial generic production in Hungary explains much of the value chain specialties, which leaves its mark on the limited impact of the industry on the national economy.

Suggested Citation

  • Katalin Antalóczy & Tamás Gáspár & Magdolna Sass, 2019. "The Specialties of the Pharmaceutical Value Chains in Hungary," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 41-72, December.
    • Handle: RePEc:aka:aoecon:v:69:y:2019:i:supplement2:p:41-72
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    References listed on IDEAS

    as
    1. Felker, G. & Chaudhuri, S. & Gyorgy, K. & Goldman, M., 1997. "The Pharmaceutical Industry in India and Hungary. Policies, Institutions, and Technological Development," Papers 392, World Bank - Technical Papers.
    2. Pawel Folfas & Beáta Udvari, 2019. "Chemical Industry and Value-Added Trade – A Comparative Study on Hungary and Poland," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(1), pages 81-99, March.
    3. De Backer, Koen & Miroudot, Sébastien, 2014. "Mapping global value chains," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37176.
    4. Meng, Bo & Fang, Yong & Yamano, Norihiko, 2012. "Measuring global value chains and regional economic integration : an international input-output approach," IDE Discussion Papers 362, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    5. Sturgeon, Timothy J. & Kawakami, Momoko, 2010. "Global value chains in the electronics industry : was the crisis a window of opportunity for developing countries ?," Policy Research Working Paper Series 5417, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    pharmaceutical industry; global value chains; Hungary;
    All these keywords.

    JEL classification:

    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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