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Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India

Resource type
Authors/contributors
Title
Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India
Abstract
Under the Agreement on Trade-Related Intellectual Property Rights, the WorldTrade Organization members are required to enforce product patents for pharmaceuticals.In this paper we empirically investigate the welfare effects of thisrequirement on developing countries using data for the fluoroquinolones subsegmentof the systemic anti-bacterials segment of the Indian pharmaceuticals market.Our results suggest that concerns about the potential adverse welfare effects ofTRIPS may have some basis. We estimate that the withdrawal of all domesticproducts in this subsegment is associated with substantial welfare losses to theIndian economy, even in the presence of price regulation. The overwhelming portionof this welfare loss derives from the loss of consumer welfare. (JEL F13, L65, O34)
Publication
American Economic Review
Volume
96
Issue
5
Pages
1477-1514
Date
2006-12
Citation
Chaudhuri, S., Goldberg, P. K., & Jia, P. (2006). Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India. American Economic Review, 96, 1477–1514.
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