Study on the relationship between buyer market power, spatial spillover effect, and profit in China's pharmaceutical industry.

ABSTRACT: Previous studies have extensively explored industrial innovation, but the impact of downstream buyer market power on upstream industries remains underexamined. Using a spatial Durbin model (SDM) and data from China's medical and pharmaceutical sectors (2001-2021), we analyze how buyer market power affects pharmaceutical industry profitability. Key findings include: (1) local buyer market power reduces local pharmaceutical profitability and may also negatively affect other regions through spatial spillover, though this spillover effect is weak. (2) Stronger regional economic ties amplify the impact of local medical industry power on pharmaceutical profitability. (3) Supplier countervailing power can mitigate the negative effects of buyer power on pharmaceutical profits. (4) Buyer market pow

SUBMITTER: Guanyi Y 

PROVIDER: S-EPMC12660219 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature