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The pharmaceutical industry of Puerto Rico: Ramifications of global competition

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  • Ramcharran, Harri

Abstract

This paper utilizes a non-homogeneous production function to estimate the efficiency of the pharmaceutical industry of Puerto Rico using data from 1980 to 2008. Global competition in recent years has resulted in job loss and plant closures requiring strategies to profitably use the industry's excess capacity. The estimated results indicate operation at decreasing returns to scale mainly due to the decreasing output elasticity of the number of plants; labor productivity, however, is positive and increasing. Shifting production to generic drugs as a challenge to foreign competition is a top policy consideration.

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  • Ramcharran, Harri, 2011. "The pharmaceutical industry of Puerto Rico: Ramifications of global competition," Journal of Policy Modeling, Elsevier, vol. 33(3), pages 395-406, May.
    • Handle: RePEc:eee:jpolmo:v:33:y:2011:i:3:p:395-406
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    Cited by:

    1. Harri Ramcharran, 2017. "Foreign direct investment in the Dominican Republic: consequences and recommendations for sustainable growth," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 41(3), pages 610-629, July.
    2. Varun Mahajan & D. K. Nauriyal & S. P. Singh, 2020. "Domestic market competitiveness of Indian drug and pharmaceutical industry," Review of Managerial Science, Springer, vol. 14(3), pages 519-559, June.
    3. Luis Gautier, 2017. "Foreign direct investment under fiscal interdependence when policy is set unilaterally," International Economics and Economic Policy, Springer, vol. 14(4), pages 579-599, October.
    4. Kai Andree & John S. Heywood & Mike Schwan & Zheng Wang, 2018. "A Spatial Model Of Cartel Stability: The Influence Of Production Cost Convexity," Bulletin of Economic Research, Wiley Blackwell, vol. 70(3), pages 298-311, July.
    5. Gabriel Courey, 2018. "Spatial price discrimination, sequential location and convex production costs," Letters in Spatial and Resource Sciences, Springer, vol. 11(2), pages 223-232, July.
    6. Ramcharran, Harri, 2017. "Bank lending to small business in India: Analyzing productivity and efficiency," The Quarterly Review of Economics and Finance, Elsevier, vol. 65(C), pages 16-24.
    7. John S. Heywood & Dongyang Li & Guangliang Ye, 2022. "Mixed duopoly under hotelling with convex production costs," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 487-510, October.

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