👤

what do you think is the effect of high dependency ratio of developing countries ​

Sagot :

Answer:

A higher dependency ratio is likely to reduce productivity growth. A growth in the non-productive population will diminish productive capacity and could lead to a lower long-run trend rate of economic growth.

Explanation:

Answer:

A higher dependency ratio is likely to reduce productivity growth. A growth in the non-productive population will diminish productive capacity and could lead to a lower long-run trend rate of economic growth.

Explanation:

if the government fails to tackle issues relating to a higher dependency ratio, there could be increased pressures placed on government finances, leading to higher borrowing or higher taxes which also reduce economic growth.             And I hope this would help the answer :)