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Regulatory policy and the location of bio-pharmaceutical FDI in Europe

Author

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  • Pamina Koenig

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Megan Macgarvie

    (BU - Boston University [Boston], NBER - The National Bureau of Economic Research)

Abstract

This paper examines the relationship bewteen cross-country differences in drug price regulation and the location of biopharmaceutical Foreign Direct Investment (FDI) in Europe. We use a theoretically-grounded location-choice model and data on 294 investments initiated in 27 European countries between 2002 and 2006 to test the hypothesis that biopharmaceutical companies are less likely to locate new investments in countries with more stringent price regulation.

Suggested Citation

  • Pamina Koenig & Megan Macgarvie, 2009. "Regulatory policy and the location of bio-pharmaceutical FDI in Europe," Working Papers halshs-00566800, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00566800
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00566800
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    References listed on IDEAS

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