Concentration analysis of health sector and its economic effects: A study on E7 and G7 countries

The thesis, it is aimed to examine the level of concentration in the health sector and the economic effects of these concentrations in developing countries (E7) and developed countries (G7). In the study covering the years 2000 to 2020, health sector concentrations were first measured in E7 and G7 countries, and than panel data method was used to determine the economic effects of these concentrations. Trade Concentration Index (CR), Herfindahl-Hirschman Index (HHI) and Entropy Index were used to analyze concentrations. In the study, in which geographical concentration is calculated, the Standard International Trade Classification (SITC) 2-digit export values of medical and pharmaceutical products were taken as a basis to determine the export levels of the health sector. After calculating the concentration values, the "Dynamic Panel Data" method was applied to analyze the macroeconomic effects (GDP growth, inflation, unemployment and trade openness ratio). In this context, the Arellano-Bond Generalized Moment Estimator (GMM) was used and analyzed. Geographical concentration analysis results in the health sector; It shows that there is a higher level of concentration in E7 countries than in G7 countries. While E7 countries generally have a high level of concentration, G7 countries have relatively less, that is, moderate concentration. The GMM estimator, which was made to analyze the economic effects of concentration, gave different results in both country groups. According to the results of the analysis, while the health sector concentration of E7 countries is effective on growth, unemployment and external deficit, it has no effect on inflation. In G7 countries, health sector concentration is effective on growth, inflation, unemployment and trade openness.