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Trade Liberalisation, Health Care and International Fragmentation: The Role of Health Capital Mobility

Author

Listed:
  • Tonmoy Chatterjee

    (Department of Economics, Rabindra Bharati University, Kolkata, India)

  • Kausik Gupta

    (Department of Economics, Rabindra Bharati University, Kolkata, India.)

Abstract

This paper delves into the complex relationship between health trade through international fragmentation and health trade through commercial presence. A neo-classical full employment four sector static general equilibrium model has been developed, where the three sectors produce final products except the health intermediate goods producing sector. The paper shows that expansion of health trade through commercial presence implies, under some reasonable conditions, enhancement of the volume of health trade through international fragmentation. It also shows that the composite volume of trade in health services through international fragmentation and commercial presence increases the size of the health care in our stylised small open economy.

Suggested Citation

  • Tonmoy Chatterjee & Kausik Gupta, 2014. "Trade Liberalisation, Health Care and International Fragmentation: The Role of Health Capital Mobility," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(1), pages 57-65.
    • Handle: RePEc:pid:journl:v:53:y:2014:i:1:p:57-65
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    File URL: http://www.pide.org.pk/pdf/PDR/2014/Volume1/57-65.pdf
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    References listed on IDEAS

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    1. Alan V. Deardorff, 2011. "Fragmentation in simple trade models," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 16, pages 165-181, World Scientific Publishing Co. Pte. Ltd..
    2. Ronald W. Jones & Sugata Marjit, 2018. "The Role of International Fragmentation in the Development Process," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 15, pages 255-261, World Scientific Publishing Co. Pte. Ltd..
    3. Sugata Marjit & Hamid Beladi & Avik Chakrabarti, 2004. "Trade and Wage Inequality in Developing Countries," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 295-303, April.
    4. Ronald W. Jones & Henryk Kierzkowski, 2018. "International Fragmentation and the New Economic Geography," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 17, pages 281-293, World Scientific Publishing Co. Pte. Ltd..
    5. Marjit, Sugata & Mandal, Biswajit, 2009. "General Trading Costs in Pure Theory of International Trade," MPRA Paper 19290, University Library of Munich, Germany.
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    Cited by:

    1. Chatterjee, Tonmoy & Dinda, Soumyananda, 2022. "What Determines the Health Status in Developing Countries? Evidence From a Dynamic Panel," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(4), pages 1-37, December.

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    More about this item

    Keywords

    Health Sector; Health Intermediate Sector; International Fragmentation and International Health Capital Mobility;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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