Abstract
In this paper, we study the effect of the Age Dependency Ratio of a country on that country’s economic growth using panel data regressed from 24 member countries of the Organization for Economic Cooperation and Development across the years 1960 to 2010. The relationship between a country’s ADR and its growth in RGDP per worker is modeled via an augmented Solow model. Through our regression, we find a statistically significant negative association between a country’s ADR and their economic growth. The higher the ADR of a country is; the slower their growth. It is difficult for a country to grow if their percentage of dependents are high because it requires more money and personnel to take care of these people.
