The Anatomy of the Current Antibiotics Shortage

28 Pages Posted: 17 May 2023

See all articles by Peter Klimek

Peter Klimek

Medical University of Vienna; Supply Chain Intelligence Institute Austria

Elma Dervic

Supply Chain Intelligence Institute Austria; Complexity Science Hub Vienna

Klaus Friesenbichler

Austrian Institute of Economic Research (WIFO); Supply Chain Intelligence Institute Austria

Markus Gerschberger

Upper Austria - University of Applied Sciences Upper Austria; Supply Chain Intelligence Institute Austria

Liuhuaying Yang

Supply Chain Intelligence Institute Austria; Complexity Science Hub Vienna

Date Written: March 27, 2023

Abstract

Why does the world seem to suddenly be fighting over antibiotics? For one thing, production is increasingly concentrated in two countries - China and India. For another, an entire industry seems surprised by the rapid increase in demand for drugs after the decline during the Covid-19 pandemic. Our results suggest three broad policy recommendations. First, health policies should invest into improvements of the demand tracking, planning, and forecasting infrastructure. Health policies should focus on shortages of drugs for which substitutes are also unavailable. Second, the health system seeks to guarantee the sufficient provision of drugs at low prices. The international division of labour that has emerged seems to provide price efficiency, but supply security risks have become increasingly evident. This implies a refocusing of policies towards greater supply resilience. Third, the market structure should not only mitigate supply risks, but the market design should ideally internalise supply security risks, thereby rendering ad-hoc policy interventions obsolete.

Keywords: antibiotics, shortage, international trade, value chain

JEL Classification: I18, F14

Suggested Citation

Klimek, Peter and Dervic, Elma and Friesenbichler, Klaus and Gerschberger, Markus and Yang, Liuhuaying, The Anatomy of the Current Antibiotics Shortage (March 27, 2023). Available at SSRN: https://ssrn.com/abstract=4451526 or http://dx.doi.org/10.2139/ssrn.4451526

Peter Klimek (Contact Author)

Medical University of Vienna ( email )

Supply Chain Intelligence Institute Austria ( email )

Elma Dervic

Supply Chain Intelligence Institute Austria ( email )

Complexity Science Hub Vienna ( email )

Klaus Friesenbichler

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

Supply Chain Intelligence Institute Austria ( email )

Markus Gerschberger

Upper Austria - University of Applied Sciences Upper Austria ( email )

Franz-Fritsch-Strasse 11
Wels, A-4600
Austria

Supply Chain Intelligence Institute Austria ( email )

Liuhuaying Yang

Supply Chain Intelligence Institute Austria ( email )

Complexity Science Hub Vienna ( email )

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
99
Abstract Views
288
Rank
502,287
PlumX Metrics