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HIV/AIDS and social capital in a cross-section of countries

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  • David, Antonio C.

Abstract

This paperattempts to quantify the impact of the HIV/AIDS epidemic on social capital with cross-country data. It estimates reduced-form regressions of the main determinants of social capital controlling for HIV prevalence, institutional quality, social distance, and economic indicators using data from the World Values Survey. The results obtained indicate that HIV prevalence affects social capital negatively. The empirical estimates suggest that a one standard deviation increase in HIV prevalence will lead to a 1 percent decline in trust, controlling for other determinants of social capital. If one moves from a country with a relatively low level of HIV prevalence such as Estonia, to a country with a high level such as Zimbabwe, one would observe an approximate 8 percent decline in social capital. These results are robust in a number of dimensions and highlight the empirical importance of an additional mechanism through which HIV/AIDS hinders the development process.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4263.

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Date of creation: 01 Jun 2007
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Handle: RePEc:wbk:wbrwps:4263

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Keywords: Social Capital; Population Policies; Inequality; Economic Theory&Research; HIV AIDS;

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References

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  1. Fabio Sabatini, 2006. "The Empirics of Social Capital and Economic Development: A Critical Perspective," Working Papers, Fondazione Eni Enrico Mattei 2006.15, Fondazione Eni Enrico Mattei.
  2. Wacziarg, Romain & Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio, 2002. "Fractionalization," Research Papers, Stanford University, Graduate School of Business 1744, Stanford University, Graduate School of Business.
  3. Sebnem Kalemli-Ozcan, 2012. "AIDS, “reversal” of the demographic transition and economic development: evidence from Africa," Journal of Population Economics, Springer, Springer, vol. 25(3), pages 871-897, July.
  4. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2000. "The Role of Social Capital in Financial Development," CRSP working papers, Center for Research in Security Prices, Graduate School of Business, University of Chicago 511, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
  5. Alesina, Alberto F & La Ferrara, Eliana, 2000. "Who Trusts Others?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2646, C.E.P.R. Discussion Papers.
  6. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc.
  7. Durlauf,S.N., 2001. "On the empirics of social capital," Working papers, Wisconsin Madison - Social Systems 3, Wisconsin Madison - Social Systems.
  8. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-63, July.
  9. Routledge, Bryan R. & von Amsberg, Joachim, 2003. "Social capital and growth," Journal of Monetary Economics, Elsevier, Elsevier, vol. 50(1), pages 167-193, January.
  10. Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1251-88, November.
  11. Bell, Clive & Bruhns, Ramona & Gersbach, Hans, 2006. "Economic growth, education, and AIDS in Kenya : a long-run analysis," Policy Research Working Paper Series 4025, The World Bank.
  12. Edoardo Gaffeo, 2003. "The Economics of HIV/AIDS: A Survey," Development Policy Review, Overseas Development Institute, Overseas Development Institute, vol. 21(1), pages 27-49, 01.
  13. Garretsen, Harry & Lensink, Robert & Sterken, Elmer, 2002. "Growth, financial development, societal norms and legal institutions," CCSO Working Papers, University of Groningen, CCSO Centre for Economic Research 200210, University of Groningen, CCSO Centre for Economic Research.
  14. Temple, Jonathan, 1998. "Initial Conditions, Social Capital and Growth in Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 7(3), pages 309-47, October.
  15. Bjornskov, Christian, 2006. "The multiple facets of social capital," European Journal of Political Economy, Elsevier, Elsevier, vol. 22(1), pages 22-40, March.
  16. Sjoerd Beugelsdijk & Henri L.F. de Groot & Anton B.T.M. van Schaik, 2004. "Trust and economic growth: a robustness analysis," Oxford Economic Papers, Oxford University Press, vol. 56(1), pages 118-134, January.
  17. Knack, Stephen, 2000. "Social capital and the quality of Government : evidence from the U.S. States," Policy Research Working Paper Series 2504, The World Bank.
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  1. repec:pra:mprapa:11172 is not listed on IDEAS
  2. Linkow, Benjamin, 2009. "Fraying of the Ties that Bind: HIV/AIDS and Informal Contract Enforcement in KwaZulu Natal, South Africa," MPRA Paper 21769, University Library of Munich, Germany.

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