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Pooled Procurement of Drugs in Low and Middle Income Countries

Pierre Dubois (), Yassine Lefouili and Stephane Straub ()

No 508, Working Papers from Center for Global Development

Abstract: We use data from seven low and middle income countries with diverse drug procurement systems to assess the effect of centralized procurement on drug prices and provide a theoretical mechanism that explains this effect. Our empirical analysis is based on exhaustive data on drug sales quantities and expenditures over several years for forty important molecules. We find that centralized procurement of drugs by the public sector allows much lower prices but that the induced price reduction is smaller when the supply side is more concentrated.

Keywords: drugs; procurement; low and middle income countries (search for similar items in EconPapers)
Pages: 44 pages
Date: 2019-04-10
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