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The European Pharmaceutical Industry in a Global Economy: what drives EU exports of pharmaceuticals?

Author

Listed:
  • Ludivine Blanc

    (EFPIA - European Federation of Pharmaceutical Industries and Associations)

Abstract

The pharmaceutical industry is one of the most competitive sectors in the European Union. With its substantial investments in research and development, this industry represents a key asset for the European economy and a major source of growth and employment. However, despite the importance of the pharmaceutical sector for the European Union, few researchers have attempted to assess the determinants of the EU exports of pharmaceuticals. This paper aims at filling the aforementioned gap by examining what drives EU exports of pharmaceuticals. In order to tackle this question, this paper has derived hypotheses from the Gravity Model of Trade and the relevant academic literature on pharmaceuticals. Based on an econometric analysis, the research sheds light on the complex interaction of factors influencing the EU exports of pharmaceuticals. The paper finds that the protection of intellectual property in the receiving countries, their economic size, the importance of their health sector, and the quality of infrastructures constitute major drivers to the EU exports of pharmaceuticals. On the contrary, the research shows that transports costs as well as tariff barriers and non-tariff barriers tend to hinder the EU exports of pharmaceuticals.

Suggested Citation

  • Ludivine Blanc, 2015. "The European Pharmaceutical Industry in a Global Economy: what drives EU exports of pharmaceuticals?," Bruges European Economic Research Papers 31, European Economic Studies Department, College of Europe.
    • Handle: RePEc:coe:wpbeer:31
    as

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    File URL: https://www.coleurope.eu/system/files_force/research-paper/beer31.pdf?download=1
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    References listed on IDEAS

    as
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    6. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
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    9. Parry, Thomas G, 1975. "The Product Cycle and International Production: U.K. Pharmaceutials," Journal of Industrial Economics, Wiley Blackwell, vol. 24(1), pages 21-28, September.
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    Cited by:

    1. Cristina Raluca MANDACHE & Anamaria BOBOIA, 2015. "Research on the Pharmaceutical Market in Europe and Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(4), pages 528-539, October.
    2. Anca Tamas, 2021. "The macro determinants of the Romanian pharmaceutical imports and exports in 2001-2018 period using the gravity model," International Journal of Economic Sciences, European Research Center, vol. 10(1), pages 128-142, June.

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    More about this item

    Keywords

    pharmaceutical industry; exports; gravity model; intellectual property rights; non-tariff barriers; free trade agreements.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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