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The total dependency ratio is the total numbers of the children (ages 0–14) and elderly (ages 65+) populations per 100 people of adults (ages 15–64). A high total dependency ratio indicates that the adult population and the overall economy face a greater burden to support and provide social services for youth and elderly persons, who are often economically dependent.
The dependency ratio acts like a rollercoaster when going through the stages of the Demographic Transition Model. During stages 1 and 2, the dependency ratio is high due to significantly high crude birth rates putting pressure onto the smaller working-age population to take care of all of them. In stage 3, the dependency ratio starts to ...
The shape of the pyramid can also reveal the age-dependency ratio of a population. Populations with a high proportion of children and/or of elderly people have a higher dependency ratio. This ratio refers to how many old and young people are dependent on the working-age groups (often defined as ages 15–64).
Societies who have entered the demographic window have smaller dependency ratio (ratio of dependents to working-age population) and therefore the demographic potential for high economic growth as favorable dependency ratios tend to boost savings and investments in human capital.
Demographic dividend, as defined by the United Nations Population Fund (UNFPA), is "the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older)". [1]
This is a list of countries by trade-to-GDP ratio, i.e. the sum of exports and imports of goods and services, divided by gross domestic product, expressed as a percentage, based on the data published by World Bank. The list includes sovereign states and self-governing dependent territories based upon the ISO standard ISO 3166-1.
A nation having an aid dependency ratio of about 15%-20% or higher is correlated with negative outcomes for that nation. [29] What causes dependency is the inhibition of development and economic/political reform that results from trying to use aid as a long-term solution to poverty-ridden countries.
Combined with longer life spans the result can be an increase in the dependency ratio which can put increased economic pressure on the work force. With the exception of Africa, dependency ratios are forecast to increase everywhere in the world by the end of the 21st century. Crisis in end of life care for the elderly.