Exploring the Links between HIV/AIDS, Social Capital, and Development

31 Pages Posted: 20 Apr 2016

See all articles by Antonio C. David

Antonio C. David

World Bank - Policy Research Department; International Monetary Fund (IMF)

Carmen A. Li

University of Essex - Department of Economics

Date Written: July 1, 2008

Abstract

This paper attempts to quantify the impact of the HIV/AIDS epidemic on social capital with cross-country data. Using data from the World Values Survey, the authors estimate reduced-form regressions of the main determinants of social capital controlling for HIV prevalence, institutional quality, social distance, and economic indicators. The results obtained indicate that HIV prevalence affects social capital negatively. The empirical estimates suggest that a one standard deviation increase in HIV prevalence will lead to a decline of at least 1 percent in trust, controlling for other determinants of social capital. Moving from a country with a relatively low level of HIV prevalence, such as Estonia, to a country with a relatively high level, such as Uganda, there is a more than 11 percent point decline in social capital. These results are robust in a number of dimensions and highlight the empirical importance of an additional mechanism through which HIV/AIDS hinders the development process.

Keywords: Population Policies, Social Capital, HIV AIDS, Disease Control & Prevention, Inequality

Suggested Citation

David, Antonio C. and Li, Carmen A., Exploring the Links between HIV/AIDS, Social Capital, and Development (July 1, 2008). World Bank Policy Research Working Paper No. 4679, Available at SSRN: https://ssrn.com/abstract=1233055

Antonio C. David (Contact Author)

World Bank - Policy Research Department ( email )

1818 H Street
Washington, DC 20433
United States

International Monetary Fund (IMF) ( email )

700 19th Street N.W.
Washington, DC 20431
United States

Carmen A. Li

University of Essex - Department of Economics ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom
+44 1206 872723 (Phone)
+44 1206 872724 (Fax)

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