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Macroeconomic Impact of HIV/AIDS in the Asian and Pacific Region

Author

Listed:
  • Tandon, Ajay

    (Asian Development Bank)

Abstract

This paper reports estimates of the economic impact of HIV/AIDS in the Asian and Pacific region using a standard growth model. Following previous research on this issue, an economy-wide aggregate production function is estimated with health capital as an input. HIV/AIDS is assumed to influence the accumulation of health capital proxied by a life expectancy shortfall measure. The model is estimated empirically using cross-country panel data spanning the period 1960-2000. Using a global sample, results indicate a negative impact of increasing HIV/AIDS prevalence on health capital and on economic growth. Using fairly conservative projections for HIV/AIDS prevalence, the model predicts a particularly large adverse impact on economic growth in Cambodia and Papua New Guinea.

Suggested Citation

  • Tandon, Ajay, 2005. "Macroeconomic Impact of HIV/AIDS in the Asian and Pacific Region," ADB Economics Working Paper Series 75, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0075
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    More about this item

    Keywords

    Asia and Pacific region; economic impact; growth model; health capital; HIV/AIDS;
    All these keywords.

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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