Following are some of the basic and important characteristics which are common to all developing economies: An idea of the characteristics of a developing economy must have been gathered from the above analysis of the definitions of an underdeveloped economy. Various developing countries differ a good deal from each other. Some countries such as countries of Africa do not face [...]
Most of the developing countries were under colonial rule prior to 1950. They were greatly exploited by the colonial powers. For instance, India, which was once quite prosperous, became underdeveloped and poor during the British rule. Its handicrafts could not compete with the cheap imported industrial products, and as a result the artisans and workers employed in them were rendered [...]
In this article we will discuss about the various investment criteria’s for a developing economy. The Incremental Capital-Output Ratio Criterion (ICOR): Allocation of resources is one of the central problems faced by all economies. Establishing criteria for investment of a nation's resources are crucially important for poor countries. One of the most traditional of the investment criteria uses the capital-output [...]