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Health Care Quality and Finite Changes of Trade Policy

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  • Tonmoy Chatterjee
  • Kausik Gupta

Abstract

This article attempts to relate the issues of health care quality with international trade. For this purpose we have mixed both flavours of Heckscher-Ohlin-Samuelson and Neo-Heckscher-Ohlin frameworks and have developed a hybrid type of trade theoretic general equilibrium model. In such a set-up we have shown that a movement from a regime of international health capital immobility to a regime of international health capital mobility may lead to an expansion of the size of the health quality exporting sector and at the same time such type of regime switch may lead to a contraction of quality of this health care sector. Moreover, from the hybrid model we have illustrated that the sizes of health care and composite export sector expand, whereas import sector of our small open economy contracts.

Suggested Citation

  • Tonmoy Chatterjee & Kausik Gupta, 2015. "Health Care Quality and Finite Changes of Trade Policy," Foreign Trade Review, , vol. 50(1), pages 21-30, February.
    • Handle: RePEc:sae:fortra:v:50:y:2015:i:1:p:21-30
    DOI: 10.1177/0015732514558139
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    References listed on IDEAS

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    3. Herzer, Dierk & Nunnenkamp, Peter, 2012. "FDI and health in developed economies: A panel cointegration analysis," Kiel Working Papers 1756, Kiel Institute for the World Economy (IfW Kiel).
    4. Ronald W. Jones, 2018. "The Structure of Simple General Equilibrium Models," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 4, pages 61-84, World Scientific Publishing Co. Pte. Ltd..
    5. Acharyya, Rajat & Jones, Ronald W., 2001. "Export quality and income distribution in a small dependent economy," International Review of Economics & Finance, Elsevier, vol. 10(4), pages 337-351, December.
    6. Office of Health Economics, 2007. "The Economics of Health Care," For School 001490, Office of Health Economics.
    7. J. Outreville, 2007. "Foreign direct investment in the health care sector and most-favoured locations in developing countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 8(4), pages 305-312, December.
    8. Maria del Carmen García-Alonso & Owen O'Donnell, 2001. "Income Redistribution and Access to Innovations in Health Care," Studies in Economics 0111, School of Economics, University of Kent.
    9. Rajat Acharyya & Maria D.C. Garcia-Alonso, 2008. "Income-Based Price Subsidies, Parallel Imports and Markets Access to New Drugs for the Poor," Studies in Economics 0820, School of Economics, University of Kent.
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    Cited by:

    1. Tonmoy Chatterjee & Nilendu Chatterjee, 2021. "National Defence Under Alternative Trade Policy Regimes: Theory and Evidence from Developing Countries," Foreign Trade Review, , vol. 56(1), pages 31-59, February.

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    More about this item

    Keywords

    Health care quality; international trade; international health capital mobility; general equilibrium;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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