Economic Dependency Theory

Economic Dependency Theory suggests that poorer or less developed countries rely on wealthier nations for resources, trade, and investment. This dependence often limits their economic growth and keeps them in a subordinate position, as they primarily export raw materials and import finished goods. The theory argues that this economic relationship benefits the richer countries more, maintaining global inequality. Essentially, it views the world economy as structured in a way that perpetuates dependency and prevents poorer nations from fully developing independently.