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

Edward Nketiah-Amponsah, Mohammed Abubakari and Priscilla Twumasi Baffour
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Mohammed Abubakari: Groupe Nduom
Priscilla Twumasi Baffour: University of Ghana

International Advances in Economic Research, 2019, vol. 25, issue 4, No 8, 469-480

Abstract: 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.

Keywords: Economic growth; HIV/AIDS prevalence; Sub-Saharan Africa; Generalized method of moments (search for similar items in EconPapers)
JEL-codes: O47 I10 I12 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s11294-019-09754-3

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