HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling

This paper estimates the economic impact of HIV/AIDS on KwaZulu-Natal (KZN) and the rest of South Africa (RSA). We extend previous studies by employing an integrated analytical framework that combines the following: firm-level surveys of workers’ HIV prevalence by sector and occupation; a demographi...

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Main Authors: Thurlow, James, George, Gavin, Gow, Jeff
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2009
Subjects:
Online Access:https://hdl.handle.net/10568/161872
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author Thurlow, James
George, Gavin
Gow, Jeff
author_browse George, Gavin
Gow, Jeff
Thurlow, James
author_facet Thurlow, James
George, Gavin
Gow, Jeff
author_sort Thurlow, James
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper estimates the economic impact of HIV/AIDS on KwaZulu-Natal (KZN) and the rest of South Africa (RSA). We extend previous studies by employing an integrated analytical framework that combines the following: firm-level surveys of workers’ HIV prevalence by sector and occupation; a demographic model that produces both population and workforce projections; and a regionalized economywide model linked to a survey-based micro-simulation module. This framework permits a full macro-microeconomic assessment. The results indicate that HIV/AIDS greatly reduces annual economic growth, mainly by lowering the long-term rate of technical change. However, the impacts on income poverty are small, and inequality is reduced by HIV/AIDS. This is because high unemployment among low-income households minimizes the economic costs of increased mortality. In contrast, slower economic growth hurts higher-income households despite the lower prevalence of HIV among these households. We conclude that the increase in economic growth achieved through addressing HIV/AIDS is sufficient to offset the population pressure this move will place on income poverty. Moreover, incentives to mitigate HIV/AIDS lie not only with poorer infected households, but also with uninfected higher-income households. Our findings reveal that HIV/AIDS will place a substantial burden on future economic development in KZN and RSA, confirming the need for policies to curb the economic costs of this pandemic.
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spelling CGSpace1618722025-11-06T06:12:17Z HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling Thurlow, James George, Gavin Gow, Jeff HIV infections growth poverty development policies This paper estimates the economic impact of HIV/AIDS on KwaZulu-Natal (KZN) and the rest of South Africa (RSA). We extend previous studies by employing an integrated analytical framework that combines the following: firm-level surveys of workers’ HIV prevalence by sector and occupation; a demographic model that produces both population and workforce projections; and a regionalized economywide model linked to a survey-based micro-simulation module. This framework permits a full macro-microeconomic assessment. The results indicate that HIV/AIDS greatly reduces annual economic growth, mainly by lowering the long-term rate of technical change. However, the impacts on income poverty are small, and inequality is reduced by HIV/AIDS. This is because high unemployment among low-income households minimizes the economic costs of increased mortality. In contrast, slower economic growth hurts higher-income households despite the lower prevalence of HIV among these households. We conclude that the increase in economic growth achieved through addressing HIV/AIDS is sufficient to offset the population pressure this move will place on income poverty. Moreover, incentives to mitigate HIV/AIDS lie not only with poorer infected households, but also with uninfected higher-income households. Our findings reveal that HIV/AIDS will place a substantial burden on future economic development in KZN and RSA, confirming the need for policies to curb the economic costs of this pandemic. 2009 2024-11-21T09:59:00Z 2024-11-21T09:59:00Z Working Paper https://hdl.handle.net/10568/161872 en Open Access application/pdf International Food Policy Research Institute Thurlow, James; George, Gavin; Gow, Jeff. 2009. HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa. IFPRI Discussion Paper 864. https://hdl.handle.net/10568/161872
spellingShingle HIV infections
growth
poverty
development policies
Thurlow, James
George, Gavin
Gow, Jeff
HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling
title HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling
title_full HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling
title_fullStr HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling
title_full_unstemmed HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling
title_short HIV/AIDS, growth and poverty in KwaZulu-Natal and South Africa: Integrating firm-level surveys with demographic and economywide modeling
title_sort hiv aids growth and poverty in kwazulu natal and south africa integrating firm level surveys with demographic and economywide modeling
topic HIV infections
growth
poverty
development policies
url https://hdl.handle.net/10568/161872
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