Modalities and Determinants of Trade in Health Services

Trade in health services is part of the larger phenomenon of globalization of services, wherein services have become increasingly tradeable through different modes of delivery and are playing a growing role in the growth and development process of economies. The provision of health services forms the backbone of any health system. Accessibility, quality, capacity, organization, availability of human and physical resources, and equity in the provision of health services are essential for a health care system to deliver the desired health and related sustainable development outcomes. Section 2 provides an overview of trade in health services, outlining its defining characteristics and features. Section 3 discusses the positive and negative effects of trade in health services and the associated welfare and health security implications. Section 4 delves into the factors that drive cross-border demand for, and supply of health services and outlines the barriers that constrain this trade. Section 5 concludes by outlining a conceptual framework for the determinants of trade in health services and provides insights the ways in which countries can leverage their natural advantages and shape the enabling policy and regulatory environment to participate in the growing global and regional opportunities for trade in health services, while keeping in mind the need to balance efficiency with equity