HIV/AIDS in economic growth models : how does HIV/AIDS influence the Solow Growth Model and what are the implications of the pandemic for the fight against poverty for countries in Sub-Saharan Africa?

University essay from Uppsala universitet/Nationalekonomiska institutionen

Author: Johanna Ekhagen; [2009]

Keywords: Economic growth; HIV AIDS; poverty;

Abstract:

This thesis studies the impact from HIV/AIDS on economic growth in sub-Saharan Africa. This is an important region for investigation since HIV/AIDS is more common in poor countries where economic growth levels are initially low.

The theoretical framework for the analysis is the Solow Growth Model. The analysis also considers the impact on changes to human capital and adds this factor to the Solow equation.

The analysis concludes that the HIV/AIDS epidemic has negative effects on per capita GDP growth through the parameters of the Solow Growth Model, including human capital. The thesis also deduces that the pandemic enhances income and gender inequality.

 

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