Research Article | | Peer-Reviewed

Partisan Impacts and Determinants for Internationalization of Ethiopian Pharmaceutical Products

Received: 4 September 2024     Accepted: 23 September 2024     Published: 18 October 2024
Views:       Downloads:
Abstract

Background: The pharmaceutical and related commodities manufacturing industry in Ethiopia is long-lived because the country is well-endowed with basic raw materials and local ownership and to some extent with machinery and technological know-how. The pharmaceutical industry, both globally and in Africa, encounters challenges in internationalizing products. In Ethiopia, challenges like regulatory complexities and limited government support hinder international market access for pharmaceutical products. This aim is to explore the barriers and understand why Ethiopian pharmaceuticals struggle to enter global markets. Method: The study adopted a mixed research approach, integrating qualitative and quantitative methods. It focuses on 15 pharmaceutical industries in Ethiopia, particularly those in Addis Ababa and the Oromia Special Zone, using probability and none probability sampling technique. The total study participants involved in the quantitative and qualitative studies were 373 and 15, respectively. Data collection comprises questionnaires, key informant interviews, and observation checklists, supplemented by secondary data from official and theoretical sources. Ethical considerations underscore obtaining verbal consent and ensuring confidentiality. Analysis entails descriptive statistics and qualitative synthesis, with numerical analysis conducted using STATA 14.1 software. Results: Out of the expected 384 study participants, 373 (97.13%) participated in our study, while the entire group of participants proposed in the qualitative study (15) also participated in this study. Key findings include resource constraints, regulatory issues, and biased perceptions against local products, hindering their global recognition. While strong political commitment and effective policy enforcement at the top government level are crucial, inadequate collaboration across government tiers undermines these efforts. Despite existing policies, inadequate implementation and procedural guidance diminish industry interest. There's uncertainty about government support for local pharmaceutical production, with persistent challenges like resource shortages and policy inconsistencies impeding progress. Perceptions vary on the effectiveness of policies promoting local production, and concerns about taxation issues impact the industry. Nevertheless, most respondents’ express confidence in the quality of domestically produced pharmaceuticals. Conclusion: Despite crucial government commitment, weak collaboration across levels impedes progress. Respondents note deficient policy implementation and doubt government support. Persistent issues like resource shortages persist, along with taxation concerns, despite locally produced products being perceived as equal in quality. To advance, better policy implementation, regulatory harmony, financial support, infrastructure enhancement, increased awareness, and improved collaboration are essential.

Published in International Journal of Health Economics and Policy (Volume 9, Issue 4)
DOI 10.11648/j.hep.20240904.11
Page(s) 93-106
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Challenges, Ethiopia, Harmonization, Internationalization, Partisan, Pharmaceutical

References
[1] MOTI. Ethiopia Trade and Transformation Synthesis DIAGNOSTIC TRADE INTEGRATION STUDY, 2019 July; 2.
[2] Mwangi JM. Towards African Medicines Regulatory Harmonization: The case of the East African Community. Pharmaceuticals Policy and Law, 2018: 18(1–4): 91–98.
[3] Banda G, Wangwe S, and Macintosh, M. The Pharmaceutical Industry in Africa, 2016.
[4] Muhia J, Waithera L, and Songole, R. Factors Affecting the Procurement of Pharmaceutical Drugs: A Case Study of Narok County Referral Hospital, Kenya. Medical & Clinical Reviews, 2017: 03(04).
[5] Bonaglia, F and Mathews, J. Accelerated Internationalization by Emerging Multinationals: The Case of White Goods, 2016.
[6] Wiedersheim-Paul J. Theoretical Foundations of Firm Internationalization, 2019, 23–24.
[7] Ncube BM, Dube A, and Ward K. Establishment of the African Medicines Agency: progress, challenges and regulatory readiness. J Pharm Policy Pract 2021, 14(1): 1–12.
[8] Vieira J, Frade R, Ascenso R, Martinho F, and Martinho D (2021) Determinants of internationalization as levers for sustainability: A study of the Portuguese pharmaceutical sector. Sustainability, Switzerland, 2021, 13(17): 1-9.
[9] Ngamu E. Challenges facing marketing of pharmaceutical products in Kenya, 2016.
[10] Kassahun TE. ETHIOPIA AN EMERGING MANUFACTURING HUB IN AFRICA. Addis Ababa, 2018.
[11] Robertson, R. Effects of regulating international trade on firms and workers. IZA World of Labor, 2020 June.
[12] Gabel M. Globalization and its impact on environmental management. Environmental Quality Management, 2021, 6(3): 89–93.
[13] Brief, P. Policy Brief : Addressing the Challenges of Local Pharmaceutical Production in Ethiopia, 2021.
[14] Boche B, Mulugeta T, and Gudeta T. Procurement Practice of Program Drugs and Its Challenges at the Ethiopian Pharmaceuticals Supply Agency: A Mixed Methods Study. Inquiry, United States 2022; 59.
[15] Taole N. Evaluation of the INNOPAC Library System in selected consortia and libraries in the Southern African Region: implications for the Lesotho Library Consortium, 2008.
[16] Vogel D and Kagan RA. Dynamics of Regulatory Change: How Globalization Affects National Regulatory Policies An Introduction, 2021.
[17] Factors Affecting Foreign Direct Investment in Ethiopia: ARDL Approach to Co-integration. European Journal of Business and Management, 2020.
[18] TAYE, L. Assessment of External factors for Internalization of a pharma, 2019.
[19] Marew et al. Trends and Challenges in Access to Essential Medicines in Ethiopia and the Contributions of Local Pharmaceutical Production. Ethiop J Health ScI, 2022, 32(5): 1027–1042.
Cite This Article
  • APA Style

    Waktole, G. D., Negera, T. T. (2024). Partisan Impacts and Determinants for Internationalization of Ethiopian Pharmaceutical Products. International Journal of Health Economics and Policy, 9(4), 93-106. https://doi.org/10.11648/j.hep.20240904.11

    Copy | Download

    ACS Style

    Waktole, G. D.; Negera, T. T. Partisan Impacts and Determinants for Internationalization of Ethiopian Pharmaceutical Products. Int. J. Health Econ. Policy 2024, 9(4), 93-106. doi: 10.11648/j.hep.20240904.11

    Copy | Download

    AMA Style

    Waktole GD, Negera TT. Partisan Impacts and Determinants for Internationalization of Ethiopian Pharmaceutical Products. Int J Health Econ Policy. 2024;9(4):93-106. doi: 10.11648/j.hep.20240904.11

    Copy | Download

  • @article{10.11648/j.hep.20240904.11,
      author = {Guyassa Daniel Waktole and Tefera Tezera Negera},
      title = {Partisan Impacts and Determinants for Internationalization of Ethiopian Pharmaceutical Products
    },
      journal = {International Journal of Health Economics and Policy},
      volume = {9},
      number = {4},
      pages = {93-106},
      doi = {10.11648/j.hep.20240904.11},
      url = {https://doi.org/10.11648/j.hep.20240904.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.hep.20240904.11},
      abstract = {Background: The pharmaceutical and related commodities manufacturing industry in Ethiopia is long-lived because the country is well-endowed with basic raw materials and local ownership and to some extent with machinery and technological know-how. The pharmaceutical industry, both globally and in Africa, encounters challenges in internationalizing products. In Ethiopia, challenges like regulatory complexities and limited government support hinder international market access for pharmaceutical products. This aim is to explore the barriers and understand why Ethiopian pharmaceuticals struggle to enter global markets. Method: The study adopted a mixed research approach, integrating qualitative and quantitative methods. It focuses on 15 pharmaceutical industries in Ethiopia, particularly those in Addis Ababa and the Oromia Special Zone, using probability and none probability sampling technique. The total study participants involved in the quantitative and qualitative studies were 373 and 15, respectively. Data collection comprises questionnaires, key informant interviews, and observation checklists, supplemented by secondary data from official and theoretical sources. Ethical considerations underscore obtaining verbal consent and ensuring confidentiality. Analysis entails descriptive statistics and qualitative synthesis, with numerical analysis conducted using STATA 14.1 software. Results: Out of the expected 384 study participants, 373 (97.13%) participated in our study, while the entire group of participants proposed in the qualitative study (15) also participated in this study. Key findings include resource constraints, regulatory issues, and biased perceptions against local products, hindering their global recognition. While strong political commitment and effective policy enforcement at the top government level are crucial, inadequate collaboration across government tiers undermines these efforts. Despite existing policies, inadequate implementation and procedural guidance diminish industry interest. There's uncertainty about government support for local pharmaceutical production, with persistent challenges like resource shortages and policy inconsistencies impeding progress. Perceptions vary on the effectiveness of policies promoting local production, and concerns about taxation issues impact the industry. Nevertheless, most respondents’ express confidence in the quality of domestically produced pharmaceuticals. Conclusion: Despite crucial government commitment, weak collaboration across levels impedes progress. Respondents note deficient policy implementation and doubt government support. Persistent issues like resource shortages persist, along with taxation concerns, despite locally produced products being perceived as equal in quality. To advance, better policy implementation, regulatory harmony, financial support, infrastructure enhancement, increased awareness, and improved collaboration are essential.
    },
     year = {2024}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Partisan Impacts and Determinants for Internationalization of Ethiopian Pharmaceutical Products
    
    AU  - Guyassa Daniel Waktole
    AU  - Tefera Tezera Negera
    Y1  - 2024/10/18
    PY  - 2024
    N1  - https://doi.org/10.11648/j.hep.20240904.11
    DO  - 10.11648/j.hep.20240904.11
    T2  - International Journal of Health Economics and Policy
    JF  - International Journal of Health Economics and Policy
    JO  - International Journal of Health Economics and Policy
    SP  - 93
    EP  - 106
    PB  - Science Publishing Group
    SN  - 2578-9309
    UR  - https://doi.org/10.11648/j.hep.20240904.11
    AB  - Background: The pharmaceutical and related commodities manufacturing industry in Ethiopia is long-lived because the country is well-endowed with basic raw materials and local ownership and to some extent with machinery and technological know-how. The pharmaceutical industry, both globally and in Africa, encounters challenges in internationalizing products. In Ethiopia, challenges like regulatory complexities and limited government support hinder international market access for pharmaceutical products. This aim is to explore the barriers and understand why Ethiopian pharmaceuticals struggle to enter global markets. Method: The study adopted a mixed research approach, integrating qualitative and quantitative methods. It focuses on 15 pharmaceutical industries in Ethiopia, particularly those in Addis Ababa and the Oromia Special Zone, using probability and none probability sampling technique. The total study participants involved in the quantitative and qualitative studies were 373 and 15, respectively. Data collection comprises questionnaires, key informant interviews, and observation checklists, supplemented by secondary data from official and theoretical sources. Ethical considerations underscore obtaining verbal consent and ensuring confidentiality. Analysis entails descriptive statistics and qualitative synthesis, with numerical analysis conducted using STATA 14.1 software. Results: Out of the expected 384 study participants, 373 (97.13%) participated in our study, while the entire group of participants proposed in the qualitative study (15) also participated in this study. Key findings include resource constraints, regulatory issues, and biased perceptions against local products, hindering their global recognition. While strong political commitment and effective policy enforcement at the top government level are crucial, inadequate collaboration across government tiers undermines these efforts. Despite existing policies, inadequate implementation and procedural guidance diminish industry interest. There's uncertainty about government support for local pharmaceutical production, with persistent challenges like resource shortages and policy inconsistencies impeding progress. Perceptions vary on the effectiveness of policies promoting local production, and concerns about taxation issues impact the industry. Nevertheless, most respondents’ express confidence in the quality of domestically produced pharmaceuticals. Conclusion: Despite crucial government commitment, weak collaboration across levels impedes progress. Respondents note deficient policy implementation and doubt government support. Persistent issues like resource shortages persist, along with taxation concerns, despite locally produced products being perceived as equal in quality. To advance, better policy implementation, regulatory harmony, financial support, infrastructure enhancement, increased awareness, and improved collaboration are essential.
    
    VL  - 9
    IS  - 4
    ER  - 

    Copy | Download

Author Information
  • Department of Management, LIGS University, Hawaii, USA

  • Department of Pharmacy, Rift Valley University, Addis Ababa, Ethiopia

  • Sections