The Effect Of Intellectual Property Protection On China's Import Of Pharmaceutical Products

Since China joined the WTO.its quantum of foreign trade has increased rapidly.As high-tech products,pharmaceutical products link with the intellectual property protection closely.Intellectual property protection can effectively protect the technological innovation of pharmaceutical products.Having more independent intellectual property rights of pharmaceutical products can improve our pharmaceutical companies' competitiveness in foreign trade and promote foreign trade to get better and faster development.At present.China has less independent intellectual property rights of pharmaceutical products.Generic drugs dominate the pharmaceutical market,accounting for more than 800%.More than 90%of high-end medical devices are foreign brands,basically monopolized by foreign products.Pharmaceutical industry has become one of the critical industries of deepening the reform.On March 25,2015,in order to achieve the upgrading of manufacturing industry.Premier Li Keqiang deployed the implementation of "Made in China 2025".The meeting proposed 10 key areas of development,including high-performance biological medicine and medical devices.From this we can see that the state of the pharmaceutical industry receives unprecedented attention.The pharmaceutical industry "13th Five-Year" planning will also identify high-performance medical devices and biological medicine as major breakthroughs in the field.In 2008,the US joined TPP and actively promote the TPP negotiations on the intellectual property rights in an attempt to establish a higher level of intellectual property protection system.TPP reached in 2015 shows that the level of international intellectual property rights will be stronger.The pharmaceutical industry is one of the key areas of intellectual property protection to reach the TPP.It is obious that high standards of intellectual property protection of pharmaceutical products has become an international trend.In this context,studying the issue of intellectual property protection and analyzing long-term interests of it will be beneficial to our country to adapt to the international development trend of TPP better.At present,domestic and foreign studies about intellectual property protection and trade mainly focus on the national and industry level,few on the product level.Compared with the national and industry level,studies on product level can reflect the impact of intellectual property protection for specific products and provide specific countermeasures for related enterprises.Only a few scholars have studied import trade from the perspective of three margins,a detail study of the import trade of a particular product is very rare.This paper selects the pharmaceutical products as object to study import trade from the view of three margins,so that you can clearly analyze the growth pattern of China's pharmaceutical products import.The study shows that the influencing path is mainly through intensive margin,especially price margin.Based on bilateral 5-digit trade data between China and other 13countries from 2003 to 2014,we make an empirical test to examine how intellectual property protection affected China's pharmaceutical products import and its three margins.Our empirical work supports that for the trade volume,the more we protect the intellectual property,the less we imported.Strengthening the intellectual property protection will diversify the pharmaceutical products imports,but will reduce the quantity and price.According to this result,the paper argues that intellectual property protection of pharmaceutical products should be based on national conditions.In other words,our country should choose the level of intellectual property protection in varying degrees according to the different stages of development and formulate suitable intellectual property protection policy for pharmaceutical industry.Although a high level of intellectual property protection will reduce the quantity of imports,it can increase the variety of imports.In the long term,it will encourage the development and technological innovation of our pharmaceutical products.Therefore,China should promote the development of pharmaceutical enterprises by strengthening the protection of intellectual property in the future.