Under the Agreement on Trade-Related Intellectual Property Rights, the World
Trade Organization members are required to enforce product patents for pharmaceuticals.
In this paper we empirically investigate the welfare effects of this
requirement on developing countries using data for the fluoroquinolones subsegment
of the systemic anti-bacterials segment of the Indian pharmaceuticals market.
Our results suggest that concerns about the potential adverse welfare effects of
TRIPS may have some basis. We estimate that the withdrawal of all domestic
products in this subsegment is associated with substantial welfare losses to the
Indian economy, even in the presence of price regulation. The overwhelming portion
of this welfare loss derives from the loss of consumer welfare. (JEL F13, L65, O34)
Chaudhuri, Shubham, Pinelopi K. Goldberg and Panle Gia.
2006."Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India."American Economic Review,
96(5): 1477-1514.DOI: 10.1257/aer.96.5.1477