The Impact of HIV/AIDS on Relative Income Differential and Economic Growth in Nigeria: 1986-2010

J.A.S. Obansa, Mohammed Yelwa and K.O. Diyoke

Journal of Empirical Economics, 2014, vol. 2, issue 1, 7-18

Abstract: This paper examines the burden of HIV/AIDS on income groups (upper and lower income earners) in Nigeria, its impacts on human capital development and economic growth. Income differential, the relative difference in income per capita of the quintile group, life expectancy, out-of-pocket health expenditure, direct health expenditure, gross per capita formation were estimated, using data for the period 1986-2010. The study employed a panel data analysis procedure in order to capture the relative incidence (burden) of the epidemic between these income groups in Nigeria. Accordingly, stationarity test was conducted on the variables used in the estimation. It was found that all the variables with an exception of health expenditure were stationary at first difference. Similarly, the long-run variability test of the incidence (burden) of HIV/AIDS on differential income earners and economic growth in Nigerian was also carried out and the residuals were found parsimonious over the period Lo and MacKinlay (1988, 1989). Of significance in the findings was that the epidemic is already putting pressure on the income earners in Nigeria, especially those in the lower income group.

Keywords: HIV/AIDS; income differential; human capital; economic growth; Panel analysis. (search for similar items in EconPapers)
Date: 2014
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