The Economic Effect Of National Centralized Procurement

In order to further solve grassroots social problems such as "it is difficult and expensive to see a doctor" and "the contradiction between doctors and patients is intensifying".On November 15.2018.the "4+7" Volume-Based procurement promoted by the relevant state departments arrived as scheduled.Taking 263 A-share listed companies in the pharmaceutical industry involved in this event as samples,this paper collected the daily trading return data of individual shares of these listed c ompanies before and after the occurrence of the "Volume-Based procurement" event.Through the typical "event study method",the abnormal return rate(car)of 263 listed companies before and after the event,that is,the event window period,was calculated by Stata software,It is found that the "Volume-Based procurement " event has obvious market effect,that is,under the influence of this event,the market return rate of 263 listed companies in the pharmaceutical sector is significantly negative in the news window and significantly positive in the fact window,which has significant market effect.Then,the quarterly data of 252 pharmaceutical enterprises from the first quarter of 2014 to the first quarter of 2022 were analyzed with multi-point did.and it was found that the long-term effect of the state’s procurement with volume was to significantly improve the overall business performance of the pharmaceutical industry,but the performance of those enterprises with short establishment time,small scale,low R&D investment ratio and high growth was significantly improved.This paper uses the parallel trend test and determines the robustness of the regression result by changing the dependent variable regression.The multi-point did method itself also overcomes the endogenous problem,thus confirming that the government’s procurement policy with volume has a significant effect,and the overall performance of the pharmaceutical industry has been significantly improved.However,there are also problems in further promoting government financial subsidies,improving intellectual property protection,The establishment of a complete capital market legal system is necessary to promote the transformation of the entire pharmaceutical industry to innovation driven.