Southern African Customs Union Revenue, Public Expenditures and HIV/AIDS in BLNS Countries
AbstractThis study sets out to investigate how revenue from the Southern African Customs Union (SACU) common revenue pool affect efforts to contain HIV/AIDS in Botswana, Lesotho, Namibia and Swaziland (BLNS countries). Using a panel data set of the BLNS countries covering the period 1990-2007 in annual frequency and a health production function, we show that an increase in either SACU revenue or aggregate government expenditure increases HIV prevalence rates. Disaggregating the government expenditures into health and non-health outlays reveals that the health expenditure component decreases HIV prevalence rates. We argue, therefore, that the type of public expenditure matters: public health expenditures decrease while public non-health expenditures increase HIV prevalence rates, with the ultimate direction of HIV prevalence rates determined by the dominant of the two effects.
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Bibliographic InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 367.
Length: 18 pages
Date of creation: 2013
Date of revision:
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Government expenditure; customs union; health; HIV prevalence;
Find related papers by JEL classification:
- H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
- I12 - Health, Education, and Welfare - - Health - - - Health Production
This paper has been announced in the following NEP Reports:
- NEP-AFR-2013-09-06 (Africa)
- NEP-ALL-2013-09-06 (All new papers)
- NEP-HEA-2013-09-06 (Health Economics)
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