China and India as Suppliers of Affordable Medicines to Developing Countries
AbstractAs countries reform their patent laws to be in compliance with the Trade Related Intellectual Property Rights Agreement, an important question is how increased patent protection will affect drug prices in low-income countries. Using pharmaceutical trade data from 1996 to 2005, we examine the role of China and India as suppliers of medicines to other middle- and low-income countries and evaluate the competitive effect of medicine imports from these countries on the price of medicines from high- income countries. We find that imports of antibiotics and unspecified medicaments from India and China significantly depress the average price of these commodities imported from high-income trading partners, suggesting that India and China are not only important sources of inexpensive medicines but also have an indirect effect by lowering prices through competition. As India is the leading supplier of medicines in Sub-Saharan Africa, this region will likely be affected most adversely.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17249.
Date of creation: Jul 2011
Date of revision:
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-09 (All new papers)
- NEP-DEV-2011-08-09 (Development)
- NEP-HEA-2011-08-09 (Health Economics)
- NEP-INT-2011-08-09 (International Trade)
- NEP-IPR-2011-08-09 (Intellectual Property Rights)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Danzon, Patricia M. & Towse, Adrian, 2003. "Differential Pricing for Pharmaceuticals: Reconciling Access, R&D and Patents," Working paper 258, Regulation2point0.
- Sudip Chaudhuri & Maureen Mackintosh & Phares G M Mujinja, 2010. "Indian Generics Producers, Access to Essential Medicines and Local Production in Africa: An Argument with Reference to Tanzania," The European Journal of Development Research, Palgrave Macmillan, vol. 22(4), pages 451-468, September.
- Schmalensee Richard L, 2010. "Comment on "Pharmaceutical Price Discrimination and Social Welfare" (by Frank R. Lichtenberg)," Capitalism and Society, De Gruyter, vol. 5(1), pages 1-6, July.
- David B. Ridley, 2005. "Price Differentiation and Transparency in the Global Pharmaceutical Marketplace," PharmacoEconomics, Springer Healthcare | Adis, vol. 23(7), pages 651-658.
- Lexchin, Joel, 2004. "The effect of generic competition on the price of brand-name drugs," Health Policy, Elsevier, vol. 68(1), pages 47-54, April.
- Lichtenberg Frank R., 2010. "Pharmaceutical Price Discrimination and Social Welfare," Capitalism and Society, De Gruyter, vol. 5(1), pages 1-32, July.
- Danzon, Patricia M & Chao, Li-Wei, 2000. "Does Regulation Drive out Competition in Pharmaceutical Markets?," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 311-57, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.