GLOBAL

                                                                                                                                                                                                                                             DEVELOPMENT STUDIES

                                                                            Copyright © 2006 International Development Options

                                                                                               All Rights Reserved

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Volume Four                                                                   Winter 2005-Spring 2006                                                           Numbers 1-2.

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    DEPENDENCY RATIO AND THE ECONOMIC GROWTH PUZZLE IN SUB-SAHARAN AFRICA

 

    Paulos Gutema Negari

    Institute of Development Research

    Addis Ababa University

    Addis Ababa, Ethiopia

 

    Bichaka Fayissa

    Department of Economics and Finance

    Middle Tennessee State University

 

    Published online: February 10, 2017                                                                 

 

 

    ABSTRACT

 

Conventional growth theories explain the poor performance of African economies by stressing the inadequacy of savings, human capital, and poor institutional quality. The key question is how to spur economic growth by enhancing savings for the accumulation of both physical and human capital. By relaxing the rigid assumption that the dependency ratio remains constant over time, this paper constructs a growth-estimating equation that accommodates this demographic factor. The analytic results suggest that the Sub-Saharan Africa low economic growth puzzle may well be explained in terms of level and dynamics of the population dependency ratio of the region.

                 

 

 

 

 

 

 

 

IDO        ISSN: 1093-8281                 Copyright © 2017 International Development Options

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