The Economic Analysis Of Patented Drugs Parallel Import

The pharmaceutical industry weighs an important part of national economy in each country. The pharmaceutical industry is the combination of traditional and modern industry, it almost determines people’s life and health. The trend of Economic globalization brings people rich material life, however, it also produces some diseases such as cancer, AIDS, tuberculosis and other public health hazard disease, SARS, superbugs, H7N9 and so on epidemic occur suddenly, the demand of symptomatic drugs increase instantly. So governments pay more and more attention to the pharmaceutical industry to guard against public health crisis.This paper studies the problem of parallel imports of patented drugs, and its economic significance for a country’s drug prices, drug research and development, consumer surplus and social welfare. Through the price discrimination model, we reveal its causes. With establishing multiple game model of the reverse parallel import, and combining with the actual, we reveal its economic impact. And by collecting relevant data, we take the Indian drugs parallel imports for example to give a detailed analysis of the Indian drugs parallel imports for its drug prices, drug research and development, consumer surplus and social welfare. At last, we put forward the proposal the proposal for policy options of parallel imports for our own country.This paper is divided into five parts altogether, from theory to practice, then rises to the policy level. The first chapter is introduction, introduces the research background, research at home and abroad, methods and structure, innovation and deficiency. The second chapter begins with the concept and factors of parallel import, then introduce its legal basis and the major state policies and regulations of parallel import. The third chapter is the economic analysis of parallel imports by the price discrimination model and multiple game model of the reverse parallel import. The fourth chapter, we take the Indian drugs parallel imports for example, build the Granger causality test to support the third chapter. The fifth chapter, we reveal the development situation of our medicine parallel import of China, and finally give some suggests about the role of our government and enterprises in the parallel import and its policy options.