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A brief contribution to the debate over the impact if HIV/AIDS on economic growth

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DelaCruz, Juan

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Abstract

The objective of this paper is to obtain estimates of the effect of HIV prevalence on the growth rate of real GDP per capita between 1990 and 2004 that are not affected by the presence of simultaneity. To achieve this goal requires an instrumental variable that is correlated with changes in the prevalence of HIV but is otherwise unrelated to with the error term of the growth equation. An instrument is a variable that does not itself belong in the regression, that is correlated with the suspect explanatory variable, and that is uncorrelated with the error term. The instrumental variables employed in this paper are a set of social and epidemiological determinants of the HIV infection, and indexes of macroeconomic performance at the country level.

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File URL: http://mpra.ub.uni-muenchen.de/10841/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10840.

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Date of creation: Nov 2007
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Handle: RePEc:pra:mprapa:10840

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Related research
Keywords: HIV/AIDS; economic growth; human capital; HIV/AIDS; instrumental variables;

Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
I10 - Health, Education, and Welfare - - Health - - - General

References listed on IDEAS
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  5. Arndt, Channing & Wobst, Peter, 2002. "HIV/AIDS and labor markets in Tanzania," TMD discussion papers 102, International Food Policy Research Institute (IFPRI). [Downloadable!]
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