Impact of Centralized Drug Procurement on R&D Investment in China
Author Information
Author(s): Qiu Fangjun, Chen Shouming, Li Yujia, Wang Xianjing, Zhu Mengfei, Wu Wenqing
Primary Institution: School of Economics and Management, Tongji University, Shanghai, China
Hypothesis
Does the CVBP promote the R&D investment of pharmaceutical manufacturing firms?
Conclusion
The CVBP policy significantly promotes R&D investment in pharmaceutical manufacturing firms, especially those with high marketing expenses.
Supporting Evidence
- The CVBP policy increased R&D investment in pharmaceutical firms.
- Firms with high marketing expenses benefited more from the CVBP policy.
- Robustness tests confirmed the reliability of the findings.
Takeaway
A new drug buying policy in China helps drug companies spend more money on research and development instead of just marketing.
Methodology
Difference-in-differences analysis using data from listed manufacturing firms in China's A-share market from 2015 to 2020.
Limitations
The study does not differentiate between types of pharmaceutical firms, which may respond differently to the CVBP policy.
Participant Demographics
Listed manufacturing firms in China's A-share market, including 161 pharmaceutical manufacturing firms.
Statistical Information
P-Value
p<0.01
Statistical Significance
p<0.01
Digital Object Identifier (DOI)
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