TURKISH PHARMACEUTICALS INDUSTRY

The Globalization Effects on Turkish Pharmaceuticals Industry



Abstract

Medical technology trade is one of the most affected health areas by global regulations in the developing countries. The aim of the study is to examine recent changes in medical technology import and export and their results in Turkey. Data show that the total medical technology imports (MTI) increased from $ 34.6 million to $ 3427.9 million between 1970 and 2003. While MTI constituted 3.6% of total imports in 1970 and 1.3% in 1980, this ratio raised up to 4.9% in 2003. The ratio of MTI in total health expenditures were also increased from 7.6% in 1970 to 31.5% in 2003. Medical technology exports (MTE) have been increased from $ 0.9 million in 1970 to $ 303.2 million in 2003. The ratio of MTE to MTI increased from 2.7% to 13.9% between 1970 and 1990 and decreased after 1990, to 8.8%. Our study implied that the medical technology trade in Turkey has been negatively affected and in some respects differs from some other important industries in the globalization era. Nevertheless, detailed comparative studies in different developing countries such as China, Brazil, Mexico and India, are needed to explore the real state of medical technology trade, use and the effects of globalization on these topics.

Table of Contents

Abstract2

Chapter 1: Introduction3

Chapter 2: Literature Review3

Chapter 3: Methods3

Chapter 4: Results3

Chapter 4: Data Analysis3

Chapter 5: Conclusion3

Time Scale3

References3

Chapter 1: Introduction

The effects of globalization and its policies on economy, technology, culture, society, and the environment have been one of the most debated issues in both the developed and developing countries [1], [2] and [3]. The main policies of economic globalization which also drive the process of globalization include the deregulation of the financial and labour markets, the lowering of taxes on investments, privatization, the liberalization of trade rules, and the decentralization of public services [4] and [5]. These processes were strengthened in the 1990s by the removal of barriers to international trade, the facilitation of financial flows and the allowance of direct foreign investments among countries [6]. Furthermore, the International Monetary Fund and the World Bank's policies towards these changes and the establishment of new global institutions and regulations such as General Agreement on Tariffs and Trade, World Trade Organization have contributed to “the opening up of economies” [1] and [5]. Since the 1980s, there has been increasing pressure placed on international agreements, on the commercial regulations, which facilitate deregulation and liberalization. However, in contrast, agreements on Trade-Related Aspects of Intellectual Property Rights (TRIPS) which established the minimum universal standards for intellectual property and patent protection (20 year for pharmaceuticals), actually have continued to protect products and their prices on behalf of international companies [1] and [7].

In this respect, globalization with its multidimensional and complex properties has affected human life in all aspects, including health directly, e.g. provision finance, and the goals of health services, and/or indirectly, e.g. income, equity, environment, life conditions [5]. It is difficult to assess the impact of globalization on the health ...