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

American Economic Review, 96 (5): 1477-1514, December 2006

39 Pages Posted: 10 Jul 2019

See all articles by Shubham Chaudhuri

Shubham Chaudhuri

Columbia University, Graduate School of Arts and Sciences, Department of Economics; World Bank - East Asia and Pacific Region

Pinelopi Goldberg

Yale University - Department of Economics; National Bureau of Economic Research (NBER); Yale University - Cowles Foundation

Panle Jia Barwick

Cornell University - Department of Economics

Date Written: December 1, 2006

Abstract

Under the Agreement on Trade-Related Intellectual Property Rights, the World Trade Organization members are required to enforce product patents for pharmaceuticals. In this paper, we empirically investigate the welfare effects of this requirement on developing countries using data for the fluoroquinolones subsegment of the systemic anti-bacterials segment of the Indian pharmaceuticals market. Our results suggest that concerns about the potential adverse welfare effects of TRIPS may have some basis. We estimate that the withdrawal of all domestic products in this subsegment is associated with substantial welfare losses to the Indian economy, even in the presence of price regulation. The overwhelming portion of this welfare loss derives from the loss of consumer welfare.

JEL Classification: F13, L65, O34

Suggested Citation

Chaudhuri, Shubham and Goldberg, Pinelopi (Penny) and Barwick, Panle Jia, Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India (December 1, 2006). American Economic Review, 96 (5): 1477-1514, December 2006. Available at SSRN: https://ssrn.com/abstract=3417228 or http://dx.doi.org/10.2139/ssrn.3417228

Shubham Chaudhuri

Columbia University, Graduate School of Arts and Sciences, Department of Economics ( email )

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World Bank - East Asia and Pacific Region ( email )

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Pinelopi (Penny) Goldberg

Yale University - Department of Economics ( email )

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Yale University - Cowles Foundation

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Panle Jia Barwick (Contact Author)

Cornell University - Department of Economics ( email )

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