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Trade in Health Products: Reducing Trade Barriers for Better Health

Author

Listed:
  • Helble, Matthias

    (Asian Development Bank Institute)

  • Shepherd, Benjamin

    (Asian Development Bank Institute)

Abstract

Trade in health products has been flourishing in recent years as the demand for better health has been growing throughout the world. At the same time, trade in health products is hampered by substantive trade barriers. In this paper, we present evidence that countries around the world still apply tariffs and nontariff measures that increase prices and limit the availability of health-related products such as pharmaceuticals, vaccines, and medical equipment. The case for liberalizing trade in these products is therefore strong. In addition, we show that improving trade facilitation performance, using the World Trade Organization’s Trade Facilitation Agreement as a starting point, can be linked to improved handling of health-related products such as vaccines which, in turn, would boost usage. In the last part of the paper, we study the price differences for insulin across countries. We observe that the price of insulin has various determinants, one of them being open trade: the higher the level of competition between manufacturers, the lower the price of insulin. In summary, lowering trade barriers on health products can make a substantive contribution to building up health systems and lowering out-of-pocket payments of patients.

Suggested Citation

  • Helble, Matthias & Shepherd, Benjamin, 2017. "Trade in Health Products: Reducing Trade Barriers for Better Health," ADBI Working Papers 643, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0643
    as

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    References listed on IDEAS

    as
    1. 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.
    2. Pierre Sauvé & Gloria Pasadilla & Mia Mikic (ed.), 2011. "Service Sector Reforms: Asia-Pacific Perspectives," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr8.
    3. Shepherd, Ben & Pasadilla, Gloria, 2011. "Trade in Services and Human Development: A First Look at the Links," ADBI Working Papers 268, Asian Development Bank Institute.
    4. Rajesh Mehta, 2005. "Non-tariff Barriers Affecting India’s Exports," Trade Working Papers 22116, East Asian Bureau of Economic Research.
    5. Helble, Matthias & Aizawa, Toshiaki, 2015. "International Trade and Determinants of Price Differentials of Insulin Medicine," ADBI Working Papers 551, Asian Development Bank Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Padmashree Gehl Sampath, 2022. "Strade Measures On Pharmaceutical Products: Can They Promote Local Production And Public Health?," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 29(2), pages 47-69, November.
    2. Pierre Cotterlaz & Guillaume Gaulier & Aude Sztulman & Deniz Ünal, 2024. "Pioneering a new classification: a comprehensive study of healthcare products in global trade," Working Papers DT/2024/01, DIAL (Développement, Institutions et Mondialisation).
    3. Ayona Bhattacharjee & Rupa Chanda, 2023. "Trade in health products and population health: A long‐run relation," The World Economy, Wiley Blackwell, vol. 46(1), pages 182-207, January.
    4. Anand Sharma & Vipin Sharma & Shekhar Tokas, 2022. "Institutional quality and health outcomes: evidence from the EU countries," Economics and Business Letters, Oviedo University Press, vol. 11(2), pages 70-78.
    5. Pierre Cotterlaz & Guillaume Gaulier & Aude Sztulman & Deniz Ünal, 2024. "Pioneering a new classification: a comprehensive study of healthcare products in global trade," Working Papers 2024-02, CEPII research center.

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    More about this item

    Keywords

    trade; trade barriers; health products; pharmaceuticals; tariffs; non-tariff measures; trade liberalization; WTO Trade Facilitation Agreement; vaccine; insulin;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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