Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 541: Entry and the Number of firms in the Swedish Pharmaceuticals Market

Niklas Rudholm ()
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Niklas Rudholm: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

Abstract: This paper analyses the factors that determine entry into the Swedish pharmaceuticals market. The analysis is based on panel data for 22 different substances covering the years 1972 to 1996. The results show that profit opportunities in a particular market have a positive impact on entry. In addition, there is some evidence suggesting that the length of the patent protection period has a negative impact on entry.

Keywords: Pharmaceutical industry; entry; number of firms; panel data

JEL-codes: I11; L65

21 pages, November 28, 2000

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