EconPapers    
Economics at your fingertips  
 

Stock market behavior of pharmaceutical industry in Iran and macroeconomic factors

Hassan Heidari (), Arash Refah Kahriz () and Yousef Mohammadzadeh ()
Additional contact information
Hassan Heidari: Urmia University
Arash Refah Kahriz: Urmia University
Yousef Mohammadzadeh: Urmia University

Economic Change and Restructuring, 2019, vol. 52, issue 3, 255-277

Abstract: Abstract This paper is the first attempt to evaluate the behavior of Iran’s pharmaceutical industry in light of challenges and variations. The pharmaceutical industry can be examined from two dimensions, namely, supply and demand. With respect to the demand side, the aging population, growing urbanization, and people’s changing preferences have been identified as the major issues shaping this demand in Iran in recent years. Regarding the supply as the main focus of this paper, we examine the effect of the most important macroeconomic variables such as inflation rate of health care, oil price shocks and money growth in the pharmaceutical industry. We investigate the influencing factors through impulse response analysis and variance decomposition analysis by collecting monthly data from 2005:1 to 2016:3. The results of this study demonstrate that pharmaceutical price has increased recently, and widespread changes have occurred in the Iranian’s pharmaceutical industry. Moreover, our findings indicate that the money growth and inflation rate of health care are the most influential factors in the pharmaceutical industry in Iran, during the period of study.

Keywords: Health care; Macroeconomic factors; Pharmaceutical industry; Vector autoregressive model (search for similar items in EconPapers)
JEL-codes: G40 I11 I12 L11 L16 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10644-018-9228-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:ecopln:v:52:y:2019:i:3:d:10.1007_s10644-018-9228-7

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-08-03
Handle: RePEc:kap:ecopln:v:52:y:2019:i:3:d:10.1007_s10644-018-9228-7