Shin‐Yun Wang and Chih‐Chiang Hwang
The purpose of this paper is to apply options to the pharmaceutical markets to solute the corruption and counterfeit drugs in emerging markets.
Abstract
Purpose
The purpose of this paper is to apply options to the pharmaceutical markets to solute the corruption and counterfeit drugs in emerging markets.
Design/methodology/approach
This article proposes a framework for using pharmaceutical options. The application of options to pharmaceuticals will enable a freer and more competitive pharmaceutical market, and assist medicine producers and hospitals using pharmaceutical options market to hedge price risk.
Findings
The paper finds that it is possible, for example, to apply the theoretical framework to case studies in pharmaceutical markets.
Research limitations/implications
The present study provides a starting‐point for further research in the pharmaceutical markets sector. The environment of the existing pharmaceutical markets, the implementation of pharmaceutical options, and the potential benefit of such implementation are discussed in details.
Originality/value
This framework has proven to be useful in improving the pharmaceutical markets of the medical industry.
Details
Keywords
Folorunsho M. Ajide, Tolulope T. Osinubi, Sodiq Abiodun Oladipupo and Esther Omolade Soyode
This study aims to examine the effect of Chinese foreign direct investment (FDI) and trade on economic complexity in Africa.
Abstract
Purpose
This study aims to examine the effect of Chinese foreign direct investment (FDI) and trade on economic complexity in Africa.
Design/methodology/approach
Panel data from 34 African countries between 2003 and 2022 are used. This study analyzes the data using a two-stage least square proposed by Lewbel (2012) and Driscoll and Kraay (1998) estimator based on robust standard errors and panel quantile regression via moments proposed by Machado and Silva (2019).
Findings
The results show that Chinese FDI and trade effectively upgrade economic complexity in Africa. Also, there is an inverted-U-shaped relationship between Chinese trade and economic complexity, thus revealing evidence of the trade Laffer curve.
Originality/value
Despite the intense debate on the Chinese-African economic relationship, to the best of the authors’ knowledge, no known study has examined the implications of Chinese FDI and trade on economic complexity in Africa. Therefore, this study fills this lacuna found in the literature and suggests that Chinese FDI and trade are veritable tools for technology diffusion and innovation, which are capable of upgrading economic complexity in Africa. However, the Chinese-African trade relationship should be complemented with sound trade policies for the sustainability of the beneficial effect of Chinese trade on economic complexity in Africa.