Trade policy as a determinant of industrial structure: the case of the Kenyan pharmaceutical industry

Abstract

This paper argues that pharmaceutical manufacturing in Kenya did not establish itself behind a protectionist barrier. At the same time, the industry displays most of the features associated with the kind of manufacturing activity which requires government intervention in order to locate in a country like Kenya. This apparent paradox is explained primarily in terms of market imperfections in the pharmaceuticals sector and the implications of such a situation for government policy are touched on briefly.