| Project/Area Number |
63045028
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| Research Category |
Grant-in-Aid for Overseas Scientific Survey.
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| Allocation Type | Single-year Grants |
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| Section | University-to-University Cooperative Research |
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| Research Institution | Kobe-Gakuin University |
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Principal Investigator |
OKAMOTO Takashi Kobe-Gakuin University, Faculty of Economics, 経済学部・学, 部長・教授 (00068222)
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| Co-Investigator(Kenkyū-buntansha) |
GARTH COFFIN McGILL UNIVERSITY, 農学部, 助教授
PAUL BERMAN JOHN ABBOTT COLLEGE, 経済学, 教授
AKAHO Eiichi Kobe-Gakuin University, Faculty of Pharmaceutical Science, 薬学部, 助教授 (50122239)
KUSANO Takanori Kobe-Gakuin University, Faculty of Nutrition, 栄養学部, 教授 (50068235)
NISHIHARA Tatsuya Kobe-Gakuin University, Faculty of Economics, 経済学部, 教授 (10164576)
INOUE Kaoru Kobe-Gakuin University, Faculty of Economics, 経済学部, 教授 (60068244)
COFFIN Garth McGill University, Faculty of Agriculture
BERMAN Paul John Abbott College (Canada), Department of Economics
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| Project Period (FY) |
1988 – 1989
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| Project Status |
Completed (Fiscal Year 1989)
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| Budget Amount *help |
¥3,900,000 (Direct Cost: ¥3,900,000)
Fiscal Year 1989: ¥2,000,000 (Direct Cost: ¥2,000,000)
Fiscal Year 1988: ¥1,900,000 (Direct Cost: ¥1,900,000)
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| Keywords | drug marketing system / grain marketing system / elevator / Compulsory License / Bill C-22 / research and development / Canada and Japan |
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| Research Abstract |
Price Spreads and Margins for Wheat and Barley in Canada and Japan. Wide price differences exist for wheat and barley between Japan as a major impoter and Canada as a major exporter of these grains. Much of this difference is attributable to government policies, particularly import restrictions and domestic price supports in Japan. But part of the difference may also be due to the structure and efficiency of the marketing and distribution system which has evolved policy regimes and direction of business (export versus import). The objectives of this article are: (1) to document the price differentials which exist at each level in the respective grain marketing systems of each country (ie. producers, wholesale and consumer or and users) (2) to determine how much of these differences is directly attributable to government polices and (3) to analyze differences in the structure and efficiency of each grain marketing system as the probable source of remaining differences. Emphasis is on a
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comparative analysis for the period from 1970 to 1989, one which encompasses important grain policy changes in both countries. The results of this analysis should prove useful to policy makers and grain industry decision-makers in both countries by contributing to a better understanding of the full effects of a monopolistic export agency in Canada (The Canadian Wheat Board) and a monopsonistic import agency in Japan (The Japanese Food Agency). The findings are particularly relevant at this time as both countries face the prospect of further policy as a result of trade negotiations.
A survey conducted for Canada's pharmaceutical companies revealed that the ratio of marketing routes of drugs was approximately 6 to 4 for Type A Route "company to hospital or drug store" and Type B Route "company, wholesaler to hospital or drugstore". In Japan the latter route accounts for 90%, and second and third wholesalers intervene in the route making a marketing process so complex as to raise drug prices as much. It was found that in Canada owing to Compulsory License Act drugs with good quality have been introduced by a low price. On the other hand, this act played a role of discouraging research and development (R&D) activities of Canadian pharmaceutical companies. Bill C-22 was, then, introduced to correct this situation and the patent validity period was extended. The proportion of R&D expenses to sales volumes is high in such countries as U. S. A., U. K. and Netherland where drug-manufacturing regulations are flexible, and low in such countries as Japan and Canada where those are severe. It was especially low in Canada. It is expected that the proportion will be increased to 8% in 1991, and 10% in 1996 by the introduction of Bill C-22. Patented Medicine Prices Review Board (PMPRB) acts as a price control body of patented medicine. The pharmaceutical manufacturing industry dealing with human health issue is the one in which R&D activities should be maximized especially in Japan, where a reduction of drug prices have been routinely practiced. It is proposed that the drug price level in Japan should be raised by the factor of 1.84, (0.2-0.07) / 0.07=1.84, which is deriven from a backward calculation by using the present rate (7%) and the optimum rate (20%), the level of Switzerland and West Germany. The factor was 1.04 for Canada. Under on influence of U. K. a social health insurance system is implemented in Canada. However, a prescription price determination method is different from province to province. The Ontario method, "cost x 1.1 + $8.99", gives less price when a number of prescription days is large while the Japanese method gives less price when a number of prescription days is large. Since in Canada drug substitution is permitted if it is a drug of the same chemical entity a practice of dispensing drugs with a big margin, socalled spread-pricing, has been observed while in Japan a practice of prescribing such drugs has been observed. Less
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