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Can local producers compete with low-cost imports? A simulation study of pharmaceutical industry in low-income Africa

Bibliographic Data

ID6149666
AuthorsSudip Chaudhuri (Indian Institute of Management Calcutta, corresponding author), Alastair West (United Nations Industrial Development Organization)
Year2014
Volume5
Issue1
Pages23-38
Publication date2014-06-27
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueInnovation and Development (JOURNAL)
Journal identifiersISSN: 2157-9318 • E-ISSN: 2157-930X
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/2157930x.2014.921273
OpenAlexW2155420393
LanguageEN
Citations received2
References cited2

The industrial policy objective of promoting local production of pharmaceuticals for stimulating economic growth is increasingly appreciated by African governments and internationally. However, questions are widely raised by health policy-makers concerning the ability of Africa-based producers to compete on price with Indian and Chinese imports and, hence, to sustain access to essential medicines for low-income populations. Data are lacking to test this influential critique. This paper uses an innovative methodology to overcome the difficulties of data access within African contexts. The analysis strongly suggests that despite higher costs than Indian producers, pharmaceutical industries in small underdeveloped countries necessarily imply neither higher prices nor unviable production operations. By ensuring sufficient market access for local producers, governments (and by extension Regional Economic Communities) in low-income Africa can promote viable local production without sacrificing the objective of affordability and accessibility

Access to medicines · Agriculture · Business · Developing country · Development economics · Economic growth · Economics · Geography · International trade · Market access · Production (economics · Economic Growth and Development · Innovation and Socioeconomic Development · Pharmaceutical Economics and Policy

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Unique citing works2
Citations per year0,25
Citation span2018 - 2019 (2)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 2
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