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The Lazarus drug: the impact of antiretroviral therapy on economic growth

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  • Tompsett, Anna

Abstract

Does better population health lead to growth in per capita income? Theory is ambiguous and empirical evidence is very limited. In 2001, a steep fall in antiretroviral (ARV) drug prices triggered rapid and massive expansion of ARV therapy coverage in lower-income countries. Exploiting the sharp resultant changes in population health, I show that ARV therapy coverage expansion led to growth in GDP per capita. The positive effects on growth most likely persist for around four years. ARV therapy coverage expansion could explain around a third of the sub-Saharan African “growth miracle”.

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  • Tompsett, Anna, 2020. "The Lazarus drug: the impact of antiretroviral therapy on economic growth," Journal of Development Economics, Elsevier, vol. 143(C).
    • Handle: RePEc:eee:deveco:v:143:y:2020:i:c:s0304387818309337
    DOI: 10.1016/j.jdeveco.2019.102409
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    2. Berlanda, Andrea & Cervellati, Matteo & Esposito, Elena & Rohner, Dominic & Sunde, Uwe, 2024. "Medication against conflict," Journal of Development Economics, Elsevier, vol. 170(C).
    3. Da Costa, Shaun, 2023. "Estimating the welfare gains from anti-retroviral therapy in Sub-Saharan Africa," Journal of Health Economics, Elsevier, vol. 90(C).
    4. Shaun Da Costa & Owen O'Donnell & Raf Van Gestel, 2023. "Distributionally Sensitive Measurement and Valuation of Population Health," Tinbergen Institute Discussion Papers 23-017/V, Tinbergen Institute.
    5. Luke Chicoine & Emily Lyons & Alexia Sahue, 2021. "The impact of HIV/AIDS on human capital investment in Sub‐Saharan Africa: New evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(6), pages 842-852, September.
    6. Bidzha, Mashudu Lucas & Ngepah, Nicholas & Greyling, Talita, 2024. "The impact of antiretroviral treatment on the relationship between HIV/AIDS and economic growth," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 368-387.
    7. Shaun Da Costa, 2021. "Estimating the welfare gains from antiretroviral therapy in Sub-Saharan Africa," Working Papers 2101, Herman Deleeck Centre for Social Policy, University of Antwerp.
    8. Deng, Zhongqi & Song, Shunfeng & Jiang, Nan & Pang, Ruizhi, 2023. "Sustainable development in China? A nonparametric decomposition of economic growth," China Economic Review, Elsevier, vol. 81(C).

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