DU Chuang,etc:Institutional Complementarities and Differences in Pharmaceutical Circulation Systems Between Foreign Countries and China

Abstract：In this paper, we compare China with developed market economies in pharmaceutical circulation systems using complementarity theory in economics.We find that systematic differences are shown in the following elements:the relation between diagnosis and treatment,structures of retail/wholesale markets,distribution systems,modes of pharmaceutical price controls for outpatient and inpatient services,permitting price bargaining or not,etc.We argue that the reason for these systematic differences is pharmaceutical circulation systems behaving as a whole,whose internal components are complementary,and different pharmaceutical circulation systems adapt to corresponding external environment,especially medical services pricing system and administrative system.The policy implication of this paper is that reforming policies or measures on pharmaceutical circulation system should be systematic or complementary.Policy simply changing particular element in a pharmaceutical circulation system will be difficult to succeed,and the reform of pharmaceutical circulation system should be consistent with the reform of medical services price regulation system.

Key words： Pharmaceutical Circulation    Price Regulation    Institution    Complementarity

source:Finance & Trade Economics ,No.4,2015