Relevance of International Fragmentation as a Different mode of Trade in Health Services in Pure Trade Theory: An Inquiry

This paper attempts to integrate among international fragmentation, trade liberalization and health sector. For this purpose we have considered two different models based on Heckscher-Ohlin-Samuelson general equilibrium structure, with special reference to the health sector. In the first model we have considered four sectors and we have assumed the production process of the health sector can be fragmented. In such a setup we have shown that a movement from a regime of no fragmentation to a regime of fragmentation may lead to an expansion of the health sector. In the second model we have considered three sectors and have assumed that production process of the health sector is fragmented. In that structure we have shown that trade liberalization leads to an increase in the output level of the health sector.