Foreign Direct Investment in the Pharmaceutical Industry: Why Singapore and Not Hong Kong

Asian Journal of Comparative Law, FirstView Article/November 2015, pp 1-23

24 Pages Posted: 19 Nov 2015 Last revised: 24 Mar 2016

See all articles by Bryan Christopher Mercurio

Bryan Christopher Mercurio

Chinese University of Hong Kong - Faculty of Law; University of New South Wales - Faculty of Law

Daria Kim

Max Planck Institute for Innovation and Competition

Date Written: November 18, 2015

Abstract

This article began as mere curiosity over what appeared to be a paradox – Singapore and Hong Kong share countless economic and geopolitical similarities and compete vigorously for foreign direct investment (FDI), yet only the former has become a pharmaceutical hub while the latter struggles to attract any FDI in the sector. To find the reason for the “drastic” difference in pharmaceutical FDI, we compare the economic, legal, policy, and regulatory frameworks of the two jurisdictions focusing on the factors that have been identified in the economic literature as having the most relevance for FDI decision-making. The analysis discounts economic and legal factors before finding variances in policy and regulatory frameworks as the critical difference accounting for the disparity in the pharmaceutical FDI. Given that Hong Kong occasionally considers transforming itself into the “pharmaceutical centre for the Asia-Pacific”, this article calls for a change in policy approach and strategy before this aspiration is considered more realistically.

Keywords: Pharmaceutical FDI, regualtion, comparative policy and law analysis

JEL Classification: I18, L52, O38

Suggested Citation

Mercurio, Bryan Christopher and Kim, Daria, Foreign Direct Investment in the Pharmaceutical Industry: Why Singapore and Not Hong Kong (November 18, 2015). Asian Journal of Comparative Law, FirstView Article/November 2015, pp 1-23. Available at SSRN: https://ssrn.com/abstract=2692501

Bryan Christopher Mercurio

Chinese University of Hong Kong - Faculty of Law ( email )

6/F Western Teaching Complex
Shatin, New Territories
Hong Kong
(852) 2696 1139 (Phone)

University of New South Wales - Faculty of Law

Kensington, New South Wales 2052
Australia

Daria Kim (Contact Author)

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
143
Abstract Views
901
rank
204,707
PlumX Metrics