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Determinants of generic entry in the regulated Taiwanese prescription drug market
1Department of Economics, National Cheng Kung University, No. 1 University Road, Tainan 701, Taiwan. ymliu@mail.ncku.edu.tw
Objectives:
This paper investigates the determinants of generic entry in the regulated Taiwanese prescription drug market, where physicians both prescribe and dispense drugs.
Methods:
Using a sample of 29 ingredients and a population claim data set from 1997-2007, we employ the negative binomial regression to empirically examine the determinants of generic entry in Taiwan.
Results:
This study finds that the lagged number of competitors, market size, and market share of large-scale medical providers affect generic entry.
Conclusions:
The negative effect of large buyers on generic entry implies that rent-seeking behavior appears to create a barrier for generic manufacturers to enter into the Taiwanese prescription drug market.
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