Trade Liberalisation, Health Care and International Fragmentation: The Role of Health Capital Mobility

Tonmoy Chatterjee, Kausik Gupta


This paper delves into the complex relationship between health
trade through international fragmentation and health trade through
commercial presence. A neo-classical full employment four sector static
general equilibrium model has been developed, where the three sectors
produce final products except the health intermediate goods producing
sector. The paper shows that expansion of health trade through
commercial presence implies, under some reasonable conditions,
enhancement of the volume of health trade through international
fragmentation. It also shows that the composite volume of trade in
health services through international fragmentation and commercial
presence increases the size of the health care in our stylised small
open economy. JEL Classification: I10, F11, F21, D58 Keywords: Health
Sector, Health Intermediate Sector, International Fragmentation and
International Health Capital Mobility

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