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Title: |
Product Patent Reform and Its Impact on
Korea's Pharmaceutical Industry |
| Author: |
La Croix,
Sumner J.; Kawaura, Akihiko |
| Author
Affiliation: |
U HI and
East-West Center; Otaru U Commerce |
| Source: |
International Economic Journal, Spring 1996, v. 10, no. 1, pp. 109-124 |
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Publication Date: |
Spring 1996 |
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Abstract: |
Our analysis focuses on the effect of U.S.
government pressure on Korea to adopt product patents for chemical and
pharmaceutical products. American pressure began in November 1987 and
ended with the Korean Legislature's passage of a new patent law in
December 1986. We conduct an event study of the effect of the new patent
law on the value of Korean pharmaceutical firms listed on the Korea
Stock Exchange. Regression analysis shows that the new law induced
excess returns of -74 percent over the 14-month analysis period. The
results suggest that adoption of stronger patent laws reduced Korea's
wealth. |
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