Hiv/ Aids and economic growth in Zambia

Abstract

This study explores the relationship between HIV/AIDS prevalence and economic growth. The main objective of the study is to determine the effects of HIV/AIDS on household labour supply and economic growth in Zambia; and to assess the policy implications. The problem statement highlights the need to investigate the adverse impact of the epidemic in terms of costs at household, sectoral and macro levels and the consequences on political, social and economic structures and recommend appropriate policy implications. The study tests three hypotheses. First, that high HIV/AIDS prevalence reduces the GDP growth rate. Second, that high HIV/AIDS prevalence leads to a fall in savings and investment. Third, High prevalence of HIV/AIDS affects labour supply and may increase household poverty because of illness and deaths. The study concludes that HIV/AIDS has had impact on the Zambian economy due to its effect on labour force. Because of this, there is need to promote policies that would encourage productivity and reduction in the loss of human capital.