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Pioneering a New Classification: a Comprehensive Study of Healthcare Products in Global Trade

Author

Listed:
  • Pierre Cotterlaz
  • Guillaume Gaulier
  • Aude Sztulmac
  • Deniz Ünal

Abstract

International trade in healthcare products took off in the 2000s at the height of hyper-globalisation. Twenty years on, the Covid-19 shock drove home to governments the importance of health security and placed the spotlight on the industrial sovereignty issues raised by the international organisation of production. However, the tangled web of international value chains has compromised the traceability of the manufacturing of these essential goods. In addition, the classification of healthcare products across a multitude of industries in the trade and production nomenclatures makes them hard to identify and muddies the picture further. In this paper, we have painstakingly identified these products and classified them together in one industry grouping to assess the scale of and trends in trade to meet the needs of national health systems. Covering a vast range of products (medicinal products and their compounds, medical technology equipment and small medical materials), this healthcare industry grouping has posted the strongest relative growth since 2000, rising to the second highest share of world trade in 2021, just behind electronic products, now equalling or even just above the share of transport equipment. This paper details the nature of world trade in the healthcare industry grouping and its five branches by production stage (intermediate and final), type of trade flows (one-way and two-way) and quality/price range. It goes on to present how the advanced countries are positioned compared with the rest of the world.

Suggested Citation

  • Pierre Cotterlaz & Guillaume Gaulier & Aude Sztulmac & Deniz Ünal, 2024. "Pioneering a New Classification: a Comprehensive Study of Healthcare Products in Global Trade," Working papers 963, Banque de France.
    • Handle: RePEc:bfr:banfra:963
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    References listed on IDEAS

    as
    1. Gaulier, Guillaume & Sztulman, Aude & Ünal, Deniz, 2020. "Are global value chains receding? The jury is still out. Key findings from the analysis of deflated world trade in parts and components," International Economics, Elsevier, vol. 161(C), pages 219-236.
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    3. Helble, Matthias, 2012. "More trade for better health? International trade and tariffs on health products," WTO Staff Working Papers ERSD-2012-17, World Trade Organization (WTO), Economic Research and Statistics Division.
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    6. Helble, Matthias & Shepherd, Benjamin, 2017. "Trade in Health Products: Reducing Trade Barriers for Better Health," ADBI Working Papers 643, Asian Development Bank Institute.
    7. Simon J. Evenett & Bernard Hoekman & Nadia Rocha and Michele Ruta, 2021. "The Covid-19 Vaccine Production Club: Will Value Chains Temper Nationalism?," RSCAS Working Papers 2021/36, European University Institute.
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    More about this item

    Keywords

    Health Products; International Trade; Advanced Economies; Emerging and Developing Economies;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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