What are the characteristics of dependent economy? Explain the structu

Question

What are the characteristics of dependent economy? Explain the structuralist Theory of Dependency.

21 Jan 2021

Answer :

Word Count : 548

Characteristics of Developing Economies

1. Low Per Capita Real Income

2. High Population Growth Rate

3. High Rates of Unemployment

4. Dependence on Primary Sector

5. Dependence on Exports of Primary Commodities

1. Low Per Capita Real Income

Low per capita real income is one of the most defining characteristics of developing economies. They suffer from low per capita real income level, which results in low savings and low investments.

It means the average person doesn’t earn enough money to invest or save money. They spend whatever they make. Thus, it creates a cycle of poverty that most of the population struggles to escape. The percentage of people in absolute poverty (the minimum income level) is high in developing countries.

2. High Population Growth Rate

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