WORKING PAPER

Pooled Procurement of Drugs in Low and Middle Income Countries - Working Paper 508

April 10, 2019

Recommended

We use data from seven low and middle income countries with diverse drug procurement systems to assess the effect of centralized procurement on drug prices and provide a theoretical mechanism that explains this effect. Our empirical analysis is based on exhaustive data on drug sales quantities and expenditures over several years for forty important molecules. We find that centralized procurement of drugs by the public sector allows much lower prices but that the induced price reduction is smaller when the supply side is more concentrated.

CITATION

Dubois, Pierre, Yassine Lefouili, and Stéphane Straub. 2019. Pooled Procurement of Drugs in Low and Middle Income Countries - Working Paper 508. Center for Global Development.

DISCLAIMER & PERMISSIONS

CGD's publications reflect the views of the authors, drawing on prior research and experience in their areas of expertise. CGD is a nonpartisan, independent organization and does not toke institutional positions. You may use and disseminate CGD's publications under these conditions.