This paper quantifies the economic effect of the use of antiretroviral therapy as a frontline strategy to fight AIDS using data on 29 countries in Sub-‐Saharan Africa. To this purpose, I use two-‐stage least squares estimation defining both a health equation and an education and health capital-‐augmented structural Solow growth equation. Through the introduction of antiretroviral therapy (ART) and HIV prevalence in the health equation, I indirectly link HIV and ART to economic growth. The results show that the HIV/AIDS epidemic reduces GDP per capita by 0.175% per marginal increase in HIV prevalence. ART increases GDP per capita by 0.048% per 1% increase in ART provision. On average, this represents a 0.5% higher GDP per capita per year attributable to ART in highly affected countries (HIV prevalence>20%).
Rubio, Jose R., "How has the introduction of antiretroviral therapy (ART) affected the dynamics between AIDS and economic growth in Sub-Saharan Africa?" (2012). Economics Honors Projects. 47.
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