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India’s Health-care Sector under GATS: Inquiry into Backward and Forward Linkages

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  • Kausik Lahiri
  • Sarmila Banerjee

Abstract

With the opening up of trade in health services under the General Agreement on Trade in Services (GATS), India is finding herself in an advantageous position in terms of reaping the benefit of this enhanced global connectivity. Here, the presence of a sizeable middle class in urban areas, availability of information technology (IT)–skilled personnel and favourable domestic policies are encouraging all modes of service–trade flows to flourish. Consequently, the nature of forward and backward linkages of the medical and health services sector in the input–output chain is changing rapidly, indicating a major shift in both ( a ) composition of demand and ( b ) types of treatment provided. These changes are generally expanding the size of the market for medical care but a gradual transformation of a merit good (defined out of equity consideration) into a market good (defined out of efficiency consideration) cannot be denied. This concern calls for more comprehensive regulatory vigilance.

Suggested Citation

  • Kausik Lahiri & Sarmila Banerjee, 2013. "India’s Health-care Sector under GATS: Inquiry into Backward and Forward Linkages," Foreign Trade Review, , vol. 48(3), pages 285-357, August.
    • Handle: RePEc:sae:fortra:v:48:y:2013:i:3:p:285-357
    DOI: 10.1177/0015732513496617
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    References listed on IDEAS

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    1. Dholakia, Ravindra H. & Agarwalla, Astha & Bazaz, Aamir Bashir & Agarwal, Prasoon, 2009. "Trends in Technical Progress in India .Analysis of Input-Output Tables from 1968 to 2003," IIMA Working Papers WP2009-11-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Rupa Chanda, 2010. "Constraints To Foreign Direct Investment In Indian Hospitals," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 121-143.
    3. Smith, Richard D, 2004. "Foreign direct investment and trade in health services: A review of the literature," Social Science & Medicine, Elsevier, vol. 59(11), pages 2313-2323, December.
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    Cited by:

    1. T.P. Bhat, 2015. "International Trade in Health Care Services: Prospects and Challenges for India," India Quarterly: A Journal of International Affairs, , vol. 71(3), pages 239-254, September.
    2. T P Bhat, 2015. "INDIA: Trade in Healthcare Services," Working Papers 180, Institute for Studies in Industrial Development (ISID).

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    More about this item

    Keywords

    GATS; WTO; input–output models; health—general; analysis of health-care markets;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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