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Exploring the links between HIV|AIDS, social capital and development

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  • Antonio C. David

    (The World Bank, Washington, DC, USA)

  • Carmen A. Li

    (University of Essex, Colchester, UK)

Abstract

This paper attempts to quantify the impact of the HIV|AIDS epidemic on social capital with cross-country data. Using data from the World Values Survey (WVS), the authors estimate reduced-form regressions of the main determinants of social capital controlling for HIV prevalence, institutional quality, social distance, and economic indicators. 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 decline of at least 1 per cent in trust, controlling for other determinants of social capital. Moving from a country with a relatively low level of HIV prevalence, such as Estonia, to a country with a relatively high level, such as Uganda, there is a more than 11 per cent point 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. Copyright © 2010 John Wiley & Sons, Ltd.

Suggested Citation

  • Antonio C. David & Carmen A. Li, 2010. "Exploring the links between HIV|AIDS, social capital and development," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 941-961.
  • Handle: RePEc:wly:jintdv:v:22:y:2010:i:7:p:941-961
    DOI: 10.1002/jid.1707
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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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