Abstract:
This article analyzes the relationship between the demand for importation of pharmacochemical and pharmaceutical products and economic variables (exchange rate, import prices, and aggregate income) in Brazil, using monthly data from 1997-2014. The main results showed that increases in aggregate income and price reductions in imports have a positive and significant impact (elastic and inelastic, respectively) on imports. Exchange rate was only significant in the more aggregate model. Thus, aggregate income was a robust variable with strong impact on the importation of pharmacochemical and pharmaceutical products. The arguments in the literature that this industry’s international trade deficit is related to a deficit in knowledge and technology and the current study’s results provide evidence that as economic activity grows, there is a greater demand for this type of product. Additionally, if domestic production is insufficient, there is a need for imports, which can generate pressure on the trade deficit in the industry and contribute to Brazil’s dependence on other countries.
Keywords:
Importation of Products; Pharmaceutical Trade; Pharmaceutical Preparations
Thumbnail
