The medical goods and services trade: Relevance, characteristics, and welfare implications

1 Trade Flows in Medical Goods and Services

ABOUT THIS CHAPTER

Th is chapter has two goals: (a) it looks at the main demand and supply charac- teristics of markets for medical goods and services and how they shape gains and risks from trade in these products; and (b) it provides stylized facts on trends in international trade in medical goods and services, including the functioning of medical supply chains, before and during the COVID-19 pandemic.

THE MEDICAL GOODS AND SERVICES TRADE: RELEVANCE, CHARACTERISTICS, AND WELFARE IMPLICATIONS

Defi nitions

Medical goods. Medical goods include all products used in the diagnosis, prevention, monitoring, treatment, and alleviation of disease and injury (table 1.1). Th ese are pharmaceuticals (such as vitamins, over-the-counter pain relief, prescription cancer medication, and vaccines); medical equipment (such as magnetic resonance imaging apparatus and operating tables); orthopedic equipment (such as wheelchairs and spectacles); personal protective equipment (such as gloves and face masks); and other consumable medical supplies (such as oxygen and syringes).

Medical services. Medical services (or health-related services) cover the provision of human health services, including

• Hospital services: inpatient services provided under the supervision of a medical doctor; • Services of health professionals: medical and dental services (including services provided in outpatient clinics), services of midwives, nurses, physiotherapists, and paramedics; and