Determinants of the evolution of the pharmaceutical market in Iran for the period 2000-2017

Table of Contents

1. INTRODUCTION

2. AN OVERVIEW OF PHARMACEUTICAL POLICIES IN DEVELOPING COUNTRIES

3. PHARMACEUTICAL INDUSTRY AND MARKET IN IRAN: EVOLUTION AND STRUCTURE

3.1. Evolution of the pharmaceutical market: industrial policies and changes in domestic production

3.2. Trade policies: effect on the import of medicines

3.3. Industrial organisation of the Iranian pharmaceutical sector: structure and concentration

4. DETERMINANTS IN THE IRANIAN PHARMACEUTICAL MARKET: A QUANTITATIVE TEST

4.1. Background and hypothesis

4.2. Method and definition of variables

4.3. Results

5. CONCLUSIONS

6. REFERENCES

Research Objectives and Key Topics

This thesis examines the key factors influencing the development of Iran's pharmaceutical market between 2000 and 2017, specifically analyzing how macroeconomic variables, such as oil revenues and government subsidies, interact with domestic production and imports amidst economic volatility and international sanctions.

• The impact of oil revenue volatility on pharmaceutical industry growth.
• Evaluation of industrial and trade policies in shaping market structure.
• Analysis of the relationship between pharmaceutical subsidies, domestic production, and imports.
• The role of non-oil exports as a diversification strategy for medical imports.
• Quantifying market concentration using Herfindahl-Hirschman index benchmarks.
• Assessment of the economic shock caused by international sanctions on the pharmaceutical supply chain.

Excerpt from the Thesis

Summary of Chapters

1. INTRODUCTION: Outlines the significance of the pharmaceutical sector in middle-income economies like Iran, highlighting the reliance on petrodollars and the need for sector diversification.

2. AN OVERVIEW OF PHARMACEUTICAL POLICIES IN DEVELOPING COUNTRIES: Explores theoretical frameworks of industrial and trade policies, emphasizing the common limitations in R&D and access to technology in developing nations.

3. PHARMACEUTICAL INDUSTRY AND MARKET IN IRAN: EVOLUTION AND STRUCTURE: Describes the historical development of the Iranian pharmaceutical base, detailing specific industrial reforms, trade policies, and the complex ownership structure of the sector.

4. DETERMINANTS IN THE IRANIAN PHARMACEUTICAL MARKET: A QUANTITATIVE TEST: Presents an empirical model using OLS regression and Impulse Response Functions to determine the macroeconomic factors influencing drug production and import volumes.

5. CONCLUSIONS: Summarizes the study's findings, affirming oil revenue as a primary driver of the market and discussing the resilience of the pharmaceutical system under external economic shocks.

6. REFERENCES: Provides a comprehensive list of all academic, institutional, and statistical sources utilized in the research.

Keywords

Iran, Pharmaceutical market, Pharmaceutical industry, Oil revenues, Economic sanctions, Trade policies, Generic drugs, Industrial organization, Market concentration, Healthcare expenditure, Economic diversification, Subsidy policy, Macroeconomic determinants, Importation, Domestic production.

Frequently Asked Questions

What is the primary focus of this research?

The research analyzes the determinants of the evolution of the pharmaceutical market in Iran from 2000 to 2017, examining how macroeconomic factors, policy changes, and sanctions impacted industry development.

Which central topics are discussed in the work?

Key topics include the role of oil and gas revenues, the implementation of industrial and trade reforms, the impact of international sanctions, and the structural transition toward an open oligopoly.

What is the core research objective?

The main objective is to identify the macroeconomic factors that determined the growth and fluctuation in domestic drug production and medical imports during the study period.

What scientific methods were employed?

The study utilizes an empirical quantitative approach using Ordinary Least Squares (OLS) regression and Cholesky's Impulse Response Function (IRF) based on a Vector Autoregression (VAR) model.

What is covered in the main body of the text?

The main body examines historical policies since the 1990s, the evolution of market structure, the impact of various Five-Year Development Plans, and a detailed quantitative analysis of production and import drivers.

Which keywords best characterize this work?

Relevant keywords include Iran, Pharmaceutical market, Oil revenues, Economic sanctions, Industrial organization, and Market concentration.

How do oil revenues specifically affect the Iranian pharmaceutical market?

The study finds that oil revenues act as the primary determinant for the sector's evolution, serving as the main driver for industrial growth and funding for medicine imports.

What role do sanctions play in the pharmaceutical supply chain?

Sanctions are identified as an exogenous shock that caused currency devaluation and banking obstacles, creating difficulties in importing critical medicines, although the sector demonstrated a degree of resilience.