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

Ludivine Blanc ()
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Ludivine Blanc: EFPIA - European Federation of Pharmaceutical Industries and Associations

No 31, Bruges European Economic Research Papers from European Economic Studies Department, College of Europe

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.

Keywords: pharmaceutical industry; exports; gravity model; intellectual property rights; non-tariff barriers; free trade agreements. (search for similar items in EconPapers)
JEL-codes: C23 F14 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2015-04
New Economics Papers: this item is included in nep-hea, nep-int, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (3)

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