Revealed Symmetric Comparative Advantage of Global Medical Product Exports

Abstract

This study investigates the comparative advantages of medical product exportation among the leading exporters. We extend the traditional Balassa index by applying a revealed symmetric comparative advantage (RSCA) index that corrects the asymmetry in measuring exports’ comparative advantages or disadvantages. This study includes four groups of medical export products: medicines, medical supplies, medical equipment and technology, and personal protective equipment (PPE). We analyze data from the top 24 exporters in the world, which account for more than 80% of the export value spanning from 2015 to 2019. The findings indicate that high-income countries, specifically Switzerland, Japan, and Denmark, have a leading comparative advantage in medicines, medical supplies, and medical equipment and technology; however, China, Hong Kong, and the Czech Republic are among the leading producers of PPE. These findings provide a foundation for policy formulation to develop sustainable healthcare capacities.