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Effect of HIV/AIDS on Economic Growth in Sub-Saharan Africa: Recent Evidence

Author

Listed:
  • Edward Nketiah-Amponsah

    (University of Ghana)

  • Mohammed Abubakari

    (Groupe Nduom)

  • Priscilla Twumasi Baffour

    (University of Ghana)

Abstract

This paper examines the effect of human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS) on economic growth in sub-Saharan Africa (SSA) using data from 46 SSA countries spanning the period 2000–2015. Results based on the system-generalized method of moments estimation showed that a 1% increase in the HIV/AIDS prevalence rate in SSA decreased the growth in per capita income by 0.47%. The impact of HIV/AIDS on economic growth was felt most in Eastern Africa followed by West Africa, although the prevalence rate was highest in Southern Africa. In particular, a 1% increase in the prevalence rate of HIV/AIDS in Eastern Africa and West Africa retarded growth in per capita income by 0.64% and 0.47%, respectively, over the study period. The paper suggests that for SSA to minimize the impact of HIV/AIDS prevalence on growth, African governments should take a cue from the southern African countries by making anti-retroviral drugs more accessible and affordable to persons living with the disease.

Suggested Citation

  • Edward Nketiah-Amponsah & Mohammed Abubakari & Priscilla Twumasi Baffour, 2019. "Effect of HIV/AIDS on Economic Growth in Sub-Saharan Africa: Recent Evidence," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(4), pages 469-480, November.
    • Handle: RePEc:kap:iaecre:v:25:y:2019:i:4:d:10.1007_s11294-019-09754-3
    DOI: 10.1007/s11294-019-09754-3
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    References listed on IDEAS

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    1. Jane G Fortson, 2011. "Mortality Risk and Human Capital Investment: The Impact of HIV/AIDS in Sub-Saharan Africa," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 1-15, February.
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    More about this item

    Keywords

    Economic growth; HIV/AIDS prevalence; Sub-Saharan Africa; Generalized method of moments;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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