Drugs industry in Palestine: Demand and Elasticity for Amoxitid 500
Graduate studies faculty
Economic department
Drugs industry in Palestine: Demand and Elasticity for Amoxitid 500
Instructor: Dr. Awad Mataria
Spring 2006
Nadeen Taha
1035199
June 2006
Contents:
Background……………………………………………………………………..3
Literature review ………………………..………….…………………….5
Purpose of the study…………………………………………………….10
Importance of the study……………………..…………..…………10
Methodology…………………………………………..………………………11
Data analysis…………….……………………………………………………13
Elasticity…………………………………..………………………….………..17
Conclusion……………………………..…………………………..…………..18
Recommendation……............………………………………………….20
References...……………………..…………………….…………………...21
Background
The human drugs industry plays an important and major role in the meantime when compared with other manufacturing industries in term of productivity and employment. The share of this industry during 2003 reached 4.8% of the total drug manufacturing and 1.5% of the employment, despite that, its share in exports did not exceed 0.5% in 1998, and continued to decline until 0.0% during 2002 and 2003, influenced and affected by AlAqsa Intifada1. Moreover the political situation and the sharp shortage in medicine as a result of the curfews, caused a big increase in the demand for local medications due to the absence of foreign alternatives. The local drugs industry had to cover 48% of the local consumption beside playing an important role in medical security and general health of the Palestinians.
After 1967 war, which encouraged some individuals to establish pharmaceutical companies which practically started producing medicines in 1969. Their production was characterized by being small quantities using primitive techniques and instruments. In mid-seventies the number of pharmaceutical companies was increased to nine due to strong demand on medical products and high financial revenues. The expansion of this industry was encouraged by facilitating registration and
Economic department
Drugs industry in Palestine: Demand and Elasticity for Amoxitid 500
Instructor: Dr. Awad Mataria
Spring 2006
Nadeen Taha
1035199
June 2006
Contents:
Background……………………………………………………………………..3
Literature review ………………………..………….…………………….5
Purpose of the study…………………………………………………….10
Importance of the study……………………..…………..…………10
Methodology…………………………………………..………………………11
Data analysis…………….……………………………………………………13
Elasticity…………………………………..………………………….………..17
Conclusion……………………………..…………………………..…………..18
Recommendation……............………………………………………….20
References...……………………..…………………….…………………...21
Background
The human drugs industry plays an important and major role in the meantime when compared with other manufacturing industries in term of productivity and employment. The share of this industry during 2003 reached 4.8% of the total drug manufacturing and 1.5% of the employment, despite that, its share in exports did not exceed 0.5% in 1998, and continued to decline until 0.0% during 2002 and 2003, influenced and affected by AlAqsa Intifada1. Moreover the political situation and the sharp shortage in medicine as a result of the curfews, caused a big increase in the demand for local medications due to the absence of foreign alternatives. The local drugs industry had to cover 48% of the local consumption beside playing an important role in medical security and general health of the Palestinians.
After 1967 war, which encouraged some individuals to establish pharmaceutical companies which practically started producing medicines in 1969. Their production was characterized by being small quantities using primitive techniques and instruments. In mid-seventies the number of pharmaceutical companies was increased to nine due to strong demand on medical products and high financial revenues. The expansion of this industry was encouraged by facilitating registration and
References: Guell and Douglas, The structure dynamics of the pharmaceutical industry. The Industrial Geographer, Vol 1, issue 2, 2004. Waterson,Michael. Retail Pharmacy in Melborn: actual and Optimal Densities. The journal of industrial economics, Vol 41, issue 4, 1993. Awh, Robert Y. An Alternative Approach to the concept of demand. The journal of economic education, Vol 4, issue 1, 1972. Berndt, Eenst R. Pharmaceuticals in U.S health care: Determinants of quality and price. Journal of economic perspectives. Vol 16, issue 4, 2002.