Constraints of Cross-Border Medical Care - An Analysis in a Heckscher-Ohlin Framework

A gain of efficiency is postulated by the neoclassical theory of trade. Free trade is necessary to realize a full or partial specialization in the production of goods. The paper analyzes specialization of medical services in the framework of cross-border medical care. As theoretical framework the Heckscher-Ohlin model is applied. As generally postulated by the model an extension of medical provision becomes possible, however, constrained by transport costs, partial mobility of patients and fixed provider prices. As a consequence, relocation and specialization is constrained. This means the necessity of local provision of medical care in a minimum amount. The real potential of a realization of gains from trade in medical care must be put into question