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An Assessment of the Impact of HIV/AIDS on Economic Growth: The Case of Kenya

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  • Maureen Were
  • Nancy N. Nafula
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    Abstract

    HIV/AIDS pandemic in Africa has been closely associated with adverse economic effects, and could thwart the success of poverty reduction initiatives. HIV/AIDS is fast eroding the health benefits, which Kenya gained in the first two decades of independence. The paper explores the different channels through which HIV/AIDS affects economic growth in a low-income country like Kenya. Within this framework, the paper attempts to analyse the impact of HIV/AIDS on Kenya’s economic growth by way of simulations using a macroeconomic model for the Kenyan economy. Some of the key channels explored are the impact of HIV/AIDS on productivity and labour force supply; asset accumulation of human, physical and social capital; and the gender channel.

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    File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2003/wp-cesifo-2003-09/cesifo1_wp1034.pdf
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    Bibliographic Info

    Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1034.

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    Date of creation: 2003
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    Handle: RePEc:ces:ceswps:_1034

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    1. R Bonnel, 2000. "HIV/AIDS and Economic Growth: A Global Perspective," South African Journal of Economics, Economic Society of South Africa, vol. 68(5), pages 360-379, December.
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    Cited by:
    1. Jean-Pierre Lachaud, 2005. "HIV prevalence and poverty in Africa : micro and macro-econometric evidence applied to Burkina Faso," Documents de travail 113, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.

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