Effect of the Prevalence of HIV/AIDS and the Life Expectancy Rate on Economic Growth in SSA Countries: Difference GMM Approach

Abstract

The productivity of countries around the globe is adversely affected by the health-related problems of their labour force. This study examined the effect of the prevalence of human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS) and life expectancy on the economic growth of 33 Sub-Saharan African (SSA) countries over a period of 11 years (2002–2012). The study employed a dynamic panel approach as opposed to the static traditional approach utilised in the literature. The dynamic approach became eminent because of the fact that HIV/AIDS is a dynamic variable as its prevalence today depends on the previous years. The result revealed that HIV/AIDS is negatively correlated with economic growth in the region, with a coefficient of 0.014, and significant at the 1% level. That is, a 10% increase in HIV/AIDS prevalence leads to a 0.14% decrease in the GDP of the region. Tackling HIV/AIDS is therefore imperative to the developing Sub-Saharan African region and all hands must be on deck to end the menace globally.

Drivers of credit union penetration: An international analysis

“…However, we find the two‐step difference GMM approach a sufficient method that satisfies the objectives of the study. The use of two‐step difference GMM is consistent with Adeleye, Adedoyin, and Nathaniel (2020); Abrate, Piacenza, and Vannoni (2009); Waziri, Mohamed Nor, Raja Abdullah, and Adamu (2015); Chen and Kao (2014); Aali‐Bujari, Venegas‐Martínez, and Pérez‐Lechuga (2016); Siddiqui and Ahmed (2013); and Gnangoin, Du, Assamoi, Edjoukou, and Kassi (2019).…”

A Reconsideration of the Health Status – Economic Growth Nexus: Evaluation of the Gender Differential Effect in Nigeria

“…Testing for the threshold effect of longevity on productivity and economic growth in a panel of sub-Saharan Africa, Adedeji and Akinlo (2016) find that longevity is an increasing function of labor productivity and economic growth, with significant positive threshold effects at ages 46.7 years on labor productivity and 67.5 years on economic growth. In another contribution on the SSA region, Waziri et al (2016) assess the economic growth impact of the HIV/AIDS scourge in SSA. Analyzing the effect of the disease on life expectancy and the implication for growth in a decade period from 2002-2012, the GMM estimates show that HIV/AIDS epidemic is growth-inhibiting in the region, with a 10% increase in its prevalence rate accounting for a decline of 0.14% in GDP growth.…”