The Effect of Underground Economy on Importing Medicine in Iran

The Effect of Underground Economy on Importing Medicine in Iran Jalaee Seyed Abdolmajid1,Dowlatzadeh Anita2*, Sattari Omid 3,Nadjafi Behzad4 Received: 15. 11. 2015             Revised: 03. 02. 2016              Accepted: 21. 02. 2016 1.Professor, Department of Economics, School of Managemen...

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Main Authors: Seyed Abdolmajid Jalaee, anita dowlatzadeh, Omid Sattari, Behzad Nadjafi
Format: Article
Language:fas
Published: Kerman University of Medical Sciences 2016-03-01
Series:پژوهش‌های سلامت‌محور
Subjects:
Online Access:http://hbrj.kmu.ac.ir/browse.php?a_code=A-10-31-1&slc_lang=en&sid=1
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author Seyed Abdolmajid Jalaee
anita dowlatzadeh
Omid Sattari
Behzad Nadjafi
author_facet Seyed Abdolmajid Jalaee
anita dowlatzadeh
Omid Sattari
Behzad Nadjafi
author_sort Seyed Abdolmajid Jalaee
collection DOAJ
description The Effect of Underground Economy on Importing Medicine in Iran Jalaee Seyed Abdolmajid1,Dowlatzadeh Anita2*, Sattari Omid 3,Nadjafi Behzad4 Received: 15. 11. 2015             Revised: 03. 02. 2016              Accepted: 21. 02. 2016 1.Professor, Department of Economics, School of Management and Economics, Shahid Bahonar University, Kerman, Iran 2.MSc, School of Management and Economics, Shahid Bahonar University,Kerman, Iran. 3.PhD Student, Department of Economics, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran. 4. Assistant Professor, Expert Office Budget Ministry of Health and Medical Education, Tehran, Iran. *Correspondence: Building 4,Alley 15, Eastern 4, Jumhori Blv., Infront of EMS,Kerman. Tel: 09137134187                                  Email: anitadolatzadeh@yahoo.com Abstract Introduction:Pharmaceutical Products as strategic commodities have direct relationship with public health status. Policy making in this sector strongly depends on determination of different factors that affect medicine production, consumption and imports. According to economic literature, like other commodities, medicine imports are affected by exchange rate and grass national product (GNP). One of the most important factors affecting medicine import is related underground economic activities like medicine smuggling and informal markets. Method:In this study, through benefiting from fuzzy logic approach and using Matlab 2012 software, the size of underground economy in Iran was estimated.  Then, by specifying an import model for pharmaceutical products, the effect of underground economy on medicine import demand in Iran during 1971-2011 was determined using ordinary least squares (OLS) method in Eviews6. Results:Share of underground economy on grass domestic product (GDP) during this period has been swingy and the effect of underground economy on medicine imports has been negative but non-significant. Conclusion:Despite the necessity of considering medicine smuggling and informal markets in health sector, this important factor has been neglected in Iran policymaking processes and decision makings for medicine import. Key­words:Underground economy, Medicine import demand, Fuzzy logic approach, Ordinary least squares method Citation: Jalaee SA, Dowlatzadeh A, Sattari O, Nadjafi B.The Effect of Underground Economy on Importing Medicine in Iran. Journal of Health Based Research 2016; 1(3): 255-265.
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spelling doaj.art-3bae093b030c4558bcabfa5d0cc4eab52022-12-21T20:07:52ZfasKerman University of Medical Sciencesپژوهش‌های سلامت‌محور2423-76392423-76392016-03-0113255265The Effect of Underground Economy on Importing Medicine in IranSeyed Abdolmajid Jalaee0anita dowlatzadeh1Omid Sattari2Behzad Nadjafi3 Professor, Department of Economics, School of Management and Economics, Shahid Bahonar University, Kerman, Iran PhD Student, Department of Economics, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran Assistant Professor, Expert Office Budget Ministry of Health and Medical Education, Tehran, Iran The Effect of Underground Economy on Importing Medicine in Iran Jalaee Seyed Abdolmajid1,Dowlatzadeh Anita2*, Sattari Omid 3,Nadjafi Behzad4 Received: 15. 11. 2015             Revised: 03. 02. 2016              Accepted: 21. 02. 2016 1.Professor, Department of Economics, School of Management and Economics, Shahid Bahonar University, Kerman, Iran 2.MSc, School of Management and Economics, Shahid Bahonar University,Kerman, Iran. 3.PhD Student, Department of Economics, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran. 4. Assistant Professor, Expert Office Budget Ministry of Health and Medical Education, Tehran, Iran. *Correspondence: Building 4,Alley 15, Eastern 4, Jumhori Blv., Infront of EMS,Kerman. Tel: 09137134187                                  Email: anitadolatzadeh@yahoo.com Abstract Introduction:Pharmaceutical Products as strategic commodities have direct relationship with public health status. Policy making in this sector strongly depends on determination of different factors that affect medicine production, consumption and imports. According to economic literature, like other commodities, medicine imports are affected by exchange rate and grass national product (GNP). One of the most important factors affecting medicine import is related underground economic activities like medicine smuggling and informal markets. Method:In this study, through benefiting from fuzzy logic approach and using Matlab 2012 software, the size of underground economy in Iran was estimated.  Then, by specifying an import model for pharmaceutical products, the effect of underground economy on medicine import demand in Iran during 1971-2011 was determined using ordinary least squares (OLS) method in Eviews6. Results:Share of underground economy on grass domestic product (GDP) during this period has been swingy and the effect of underground economy on medicine imports has been negative but non-significant. Conclusion:Despite the necessity of considering medicine smuggling and informal markets in health sector, this important factor has been neglected in Iran policymaking processes and decision makings for medicine import. Key­words:Underground economy, Medicine import demand, Fuzzy logic approach, Ordinary least squares method Citation: Jalaee SA, Dowlatzadeh A, Sattari O, Nadjafi B.The Effect of Underground Economy on Importing Medicine in Iran. Journal of Health Based Research 2016; 1(3): 255-265.http://hbrj.kmu.ac.ir/browse.php?a_code=A-10-31-1&slc_lang=en&sid=1Underground economyMedicine import demandFuzzy logic approachOrdinary least squares method
spellingShingle Seyed Abdolmajid Jalaee
anita dowlatzadeh
Omid Sattari
Behzad Nadjafi
The Effect of Underground Economy on Importing Medicine in Iran
پژوهش‌های سلامت‌محور
Underground economy
Medicine import demand
Fuzzy logic approach
Ordinary least squares method
title The Effect of Underground Economy on Importing Medicine in Iran
title_full The Effect of Underground Economy on Importing Medicine in Iran
title_fullStr The Effect of Underground Economy on Importing Medicine in Iran
title_full_unstemmed The Effect of Underground Economy on Importing Medicine in Iran
title_short The Effect of Underground Economy on Importing Medicine in Iran
title_sort effect of underground economy on importing medicine in iran
topic Underground economy
Medicine import demand
Fuzzy logic approach
Ordinary least squares method
url http://hbrj.kmu.ac.ir/browse.php?a_code=A-10-31-1&slc_lang=en&sid=1
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