Economic Dependency

Definition

Economic dependency refers to a situation where one country relies heavily on another country for economic resources, trade, investment, or aid.

Related terms

Neocolonialism: Neocolonialism refers to the indirect control exerted by developed countries over developing countries through economic dominance and exploitation.

Import Substitution Industrialization (ISI):

ISI is an economic policy aimed at reducing economic dependency by promoting domestic industries and reducing reliance on imported goods.

Foreign Direct Investment (FDI):

FDI occurs when a company from one country invests directly in businesses located in another country. It can contribute to both economic development and increased economic dependency.