Determinants of the imports of essential medical products by European Union

Abstract

[EN] The rapid spread of the COVID-19 pandemic has triggered a marked distortion in the trade of medical products needed to combat its severe effects on the health of the population. This study seeks to examine the determinants of imports by EU-27 countries, through a panel data analysis for the period 2015-2020. The aim is to shed light on the distinct behaviour of imports of each of the seven products classified as essential by the World Customs Organization and the World Health Organization. To that end, economic and social characteristics of the buyer country are used as explanatory variables, as well as the origin of the goods and the effect of the virus in 2020. The results show that some determinants of imports of medical goods have a homogeneous influence on all of these products. This is the case with GDPpc and population show positive and significant coefficients for all products, with the sign as expected according to economic theory. The level of wealth of a country reflects its purchasing power, and thus capacity to purchase goods considered essential. Furthermore, the older the population in a territory, the greater the need to consume essential medical products. In 2020, the effect of the latter variable has been exacerbated by the fact that this group is the most vulnerable to the symptoms of the virus. It is confirmed that EU-27 trade agreements curb the mass entry of non-EU products and that COVID-19 has led to higher imports of certain products.