The Detrimental Effects of Capital Flight on Developing Economies

The Detrimental Effects of Capital Flight on Developing Economies

the significant negative impact on the economy when capital leaves a country. This results in the loss of scarce resources, missed domestic investment opportunities, and reduced potential revenue for the state. The opportunity cost can be extremely high, as every dollar that leaves the country represents a substantial return that could have been generated domestically. This is especially problematic for developing countries facing shortages of foreign currency reserves, leading to the accumulation of large external debt.

https://youtube.com/shorts/Kah_OFUG6zQ?si=4PmZy2HK-IEufXK8

Back to blog

Leave a comment

Please note, comments need to be approved before they are published.