A Study of Comparative Advantage and Intra-Industry Trade in the Pharmaceutical Industry of Iran

Yusefzadeh, Hassan; Rezapour, Aziz; Lotfi, Farhad; Azar, Farbod Ebadifard; Nabilo, Bahram; Gorji, Hasan Abolghasem; Hadian, Mohammad; Shahidisadeghi, Niusha; Karami, Atiyeh

doi:10.5539/gjhs.v7n6p295

Cited by 9 publications

(10 citation statements)

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“…However, a study entitled "the impact of exchange rate fluctuations on the import of medical equipment in Iran" was carried out by Jalaei and Jafari who reported that GDP and oil revenues have positive impacts on the import of medical equipment while exchange rate fluctuations had a negative effect on the same variable (28). Moreover, in another study conducted by Yusefzadeh et al (10) on the business inside the medicine industry in Iran, it Shiraz E-Med J. 2018; 19(10):e66512.…”

Section: Discussionmentioning

confidence: 99%

“…The medicine costs have experienced an increase in Iran, as well as some other countries, and these costs comprise about 30% of all health care costs and 50% of other costs in this realm (10). The analysis of the pharmaceutical industry in Iran indicated that from 1997 to 2010, the medicine use and consumption had 28.38% increases each year.…”

Section: Introductionmentioning

confidence: 99%

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Investigating the Effects of Exchange Rate Fluctuations on the Import and Export of Medicine in Iran from 2001 to 2014

et al. 2018

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Background:The exchange rate is one of the factors whose deviation from equilibrium amounts can lead to the instability in economy performance at the macro level. This study attempted to investigate the effects of exchange rate fluctuations on the import and export of medicine in Iran during 2001-2014.Methods: This longitudinal study collected the required data in each season from 2001 to 2014. The sources of our data were Iran Central Bank, Islamic Republic of Iran Customs Administration, and Food and Drug Administration. The exchange rate and some other variables such as gross domestic product (GDP), oil revenues, and the relative price of medicine import and export were used in the medicine export and import model. Finally, by using E-views software, version 8, an Engle-Granger approach was utilized to investigate the long-term relationship between the study variables. The autoregressive integrated moving average model (ARIMA) was used to estimate the fluctuations in the exchange rate. Results:The results of estimating the equations by the use of the regression method indicated that every 1% increase in oil revenues would lead to a 0.13% increase in the medicine import in short-term. Every 1% increase in GDP would averagely lead to a 1.61% increase in the same variable in long-term. Moreover, the exchange rate fluctuations had a reverse effect on medicine exports so that a 1% increase in the exchange rate fluctuations would moderately result in a 0.17% decrease in medicine export in short-term. The relative price of import had no statistically significant relationship with any of the variables. Conclusions:Since medicine plays a specifically significant role in the health system and the pharmaceutical industry uses a large amount of exchange, fluctuations in the exchange rate have negative effects on the export of medicine; therefore, health officials and policy-makers need to pay much more attention to this issue.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Investigating the Effects of Exchange Rate Fluctuations on the Import and Export of Medicine in Iran from 2001 to 2014

et al. 2018

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“…The measurement results in variation from 0 to 100. This equation is the IIT Grubel-Lloyd Index which later are being used broadly by researchers in looking for the level of IIT between advanced countries and developing countries including IIT in the ASEAN region, and as the measurement of the intensity of trade integration (Yusefzadeh et al, 2015). Krugman (2015) explained the phenomena for IIT product differentiation, increasing returns to scale, and monopolistic competition as an approach for the imperfect market structure.…”

Section: Methodsmentioning

confidence: 99%

Trade Integration Indonesia-ASEAN4 in AEC Era: A Case of Wood-based Products

Tan

2020

The Winners

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The research was conducted to find out the level integration intensity using Grubel-Lloyd index. Moreover, since Horizontal and Vertical Intra-Industry Trade (IIT) could be distinguished, it was important to find out whether Indonesia-ASEAN4 IIT of wood-based products was in one of these categories. The Hufbauer index had been used as the measurement of product differentiation. Therefore, it could be the basic information for taking policy to boost Indonesia-ASEAN IIT for this industry. The data used comprise annual statistics of wood-based product export and import between Indonesia and ASEAN4 from 2010 to 2016 which were divided into eight categories of five digits ISIC. The Grubel-Lloyd index result shows that only ISIC 16102 has achieved strong integration, the others are still in mild and even weak integration. The Hufbauer index results show that all the values approached to zero, indicated that overall wood-based products traded by Indonesia-ASEAN4 are horizontally differentiated.

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“…In 2018, the Iran Food and Drug Administration (IFDA) reported that the funds allocated to API and end products was about US$ 1 million (42%) and US$ 1.4 million (58%), respectively [ 21 ]. Although efforts have been made in recent years to reduce the amount of currency allocated to medicines, all such efforts have demonstrated Iran’s dependence on foreign countries in the field of pharmaceutical manufacture [ 25 ]. For example, one analysis of data from the Central Bank of Iran (CBI), published by Iran Open Data, shows that approximately US$ 43.8 billion in government-subsidized funds were earmarked for the import of essential goods, with nearly US$ 4.2 billion allocated to pharmaceutical companies as a preferential currency (42,000 Iranian rial) in the 2 years leading up to 2020 [ 26 ].…”

Section: Introductionmentioning

confidence: 99%

Pharmaceutical subsidy policy in Iran: a qualitative stakeholder analysis

Olyaaeemanesh

Jaafaripooyan

Abdollahiasl

et al. 2021

Health Res Policy Sys

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Background Over the past three decades, allocation of foreign currency subsidies has been the primary strategy of various administrations in Iran to improve access to medicines. This strategy has resulted in several challenges, including stakeholder conflicts of interest. Objective To identify the power, interest, and role of the stakeholders in allocating foreign currency subsidies to medicines in the Iranian health system. Methods In this qualitative study, 39 semi-structured interviews were conducted. Key informants were recruited using a purposive sampling technique. The theoretical framework adopted by Varvasovszky and Brugha was employed. The data were analysed using directed content analysis. Results The foreign currency subsidy for medicines included 21 stakeholders in five main categories: governmental organizations, Iranian Parliament, general population, nongovernmental organizations (NGOs), and the pharmaceutical industry. Stakeholders varied in their level of participation and support in the policy-making process. Among them, the Iranian Government, Planning and Budget Organization, the Ministry of Health and Medical Education (MoHME), and Iran Food and Drug Administration (IFDA) were the most important stakeholders, with highly supportive positions, while domestic drug manufacturers were the strongest opponents of this policy. The Government of Iran is the most powerful institution with regard to the ability to allocate foreign currency subsidies to medicines, followed by the MoHME and the IFDA. Conclusion This study demonstrated that identifying and analysing the stakeholders involved in allocating foreign currency subsidies to medicines can provide valuable information for policy-makers to enable a more comprehensive understanding and better capacity to determine whether or not to eliminate these subsidies. Moreover, decision-making in this process is a long-term issue that requires consensus among all stakeholders. Because of the political and social consequences of eliminating foreign currency subsidies, the necessary political will is not institutionalized. We recommend a step-by-step approach in eliminating foreign currency subsidies if the requirements are met (i.e., those related to the consequences of such interventions). Therefore, revision of the current policy along with these requirements, in addition to financial transparency and enhanced efficiency, will facilitate progress towards achieving the Sustainable Development Goals by improving access to medicines.

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A Study of Comparative Advantage and Intra-Industry Trade in the Pharmaceutical Industry of Iran

Cited by 9 publications

References 10 publications

Investigating the Effects of Exchange Rate Fluctuations on the Import and Export of Medicine in Iran from 2001 to 2014

Investigating the Effects of Exchange Rate Fluctuations on the Import and Export of Medicine in Iran from 2001 to 2014

Trade Integration Indonesia-ASEAN4 in AEC Era: A Case of Wood-based Products

Pharmaceutical subsidy policy in Iran: a qualitative stakeholder analysis

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