Aids and economic growth in South Africa

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Morbidity and mortality effects are introduced into a three sector, Ramsey-type model of economic growth. The model is calibrated to South African national accounts data and used to examine the potential impact of HIV/AIDS on economic growth. Simulation results suggest a 10 per cent decrease in the size of the effective labour force would lead to a 10 per cent decrease in long-run (steady state) GDP levels. Similarly, a 10 per cent decrease in the number of labourers would lead to an 11 per cent drop in long-run GDP.

Original languageEnglish (US)
Pages (from-to)683-692
Number of pages10
JournalSouth African Journal of Economic and Management Sciences
Issue number4
StatePublished - 2004

Bibliographical note

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© 2004, AOSIS (pty) Ltd. All rights reserved.


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