Health Care Quality and Finite Changes of Trade Policy

Abstract

This article attempts to relate the issues of health care quality with international trade. For this purpose we have mixed both flavours of Heckscher-Ohlin-Samuelson and Neo-Heckscher-Ohlin frameworks and have developed a hybrid type of trade theoretic general equilibrium model. In such a set-up we have shown that a movement from a regime of international health capital immobility to a regime of international health capital mobility may lead to an expansion of the size of the health quality exporting sector and at the same time such type of regime switch may lead to a contraction of quality of this health care sector. Moreover, from the hybrid model we have illustrated that the sizes of health care and composite export sector expand, whereas import sector of our small open economy contracts.