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An Assessment of the Impact of HIV/AIDS on Economic Growth: The Case of Kenya

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  • Maureen Were
  • Nancy N. Nafula

Abstract

HIV/AIDS pandemic in Africa has been closely associated with adverse economic effects, and could thwart the success of poverty reduction initiatives. HIV/AIDS is fast eroding the health benefits, which Kenya gained in the first two decades of independence. The paper explores the different channels through which HIV/AIDS affects economic growth in a low-income country like Kenya. Within this framework, the paper attempts to analyse the impact of HIV/AIDS on Kenya’s economic growth by way of simulations using a macroeconomic model for the Kenyan economy. Some of the key channels explored are the impact of HIV/AIDS on productivity and labour force supply; asset accumulation of human, physical and social capital; and the gender channel.

Suggested Citation

  • Maureen Were & Nancy N. Nafula, 2003. "An Assessment of the Impact of HIV/AIDS on Economic Growth: The Case of Kenya," CESifo Working Paper Series 1034, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_1034
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp1034.pdf
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    References listed on IDEAS

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    1. R Bonnel, 2000. "HIV/AIDS and Economic Growth: A Global Perspective," South African Journal of Economics, Economic Society of South Africa, vol. 68(5), pages 360-379, December.
    2. Sanjaya Lall & Carlo Pietrobelli, 2002. "Failing to Compete," Books, Edward Elgar Publishing, number 2360.
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    Cited by:

    1. Lachaud, Jean-Pierre, 2007. "HIV prevalence and poverty in Africa: Micro- and macro-econometric evidences applied to Burkina Faso," Journal of Health Economics, Elsevier, vol. 26(3), pages 483-504, May.

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