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Aids and Economic Growth: A Human Capital Approach

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  • Scott McDonald
  • Jennifer Roberts

    (Department of Economics, The University of Sheffield)

Abstract

It is estimated that by 2001 20 million people had died from AIDS, which is now the world´s fourth biggest cause of death. While the highest prevalence and death rates and number of infected persons are reported for sub-Saharan Africa, where life expectancies at birth are declining rapidly and infant mortality rates are increasing, there is evidence that the epidemic is accelerating in Asia and Eastern Europe. While the human and social costs of the HIV/AIDS epidemic are the major causes for concern, the econometric results reported in this paper indicate that the macroeconomic affects of the HIV/AIDS epidemic have been substantial; especially in Africa where the average marginal negative impact on income per capita of a one percent increase in HIV prevalence rate is 0.59 percent. Even in countries where the HIV prevalence rates are lower the marginal impacts are non trivial.

Suggested Citation

  • Scott McDonald & Jennifer Roberts, 2004. "Aids and Economic Growth: A Human Capital Approach," Working Papers 2004008, The University of Sheffield, Department of Economics, revised Aug 2004.
    • Handle: RePEc:shf:wpaper:2004008
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    References listed on IDEAS

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    More about this item

    Keywords

    AIDS; Growth; Human Capital; Panel Data.;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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