In a recent paper, economist Nathaniel Leff concludes, on the basis of an analysis of cross-section data covering some seventy-four developed and underdeveloped countries, that demographic conditions are a major determinant of aggregate savings rates, that dependency ratios are a statistically distinct and quantitatively important influence on aggregate savings ratios, and that High dependency ratios-and ultimately high birth rates-are among the important factors which account for the great disparity in aggregate savings rates between developed and underdeveloped countries. In view of the central role which the aggregate savings rate has traditionally played in development theory, and in view furthermore of the growing concern in the international community with the question of population growth, the above conclusions linking these two issues clearly warrant attention. This article examines the basis for Leff's conclusions at two levels. First, in terms of his theoretical rationale for expecting such a relationship; second, in terms of an analysis of his statistical results.
