-Political instability – Many members of the ruling elite unsure about their fate
should their regimes be overthrown – thus transfer wealth to more stable countries.
- Lower rate of return in home country
- Higher taxation of companies and individuals
- Artificially high local currency value encourages capital flight as those involved
realize much higher values of hard currencies on exchange.
- Poor infrastructure
- Due to high levels of corruption among the ruling elite – they want to keep their wealth out of reach of their local fellow citizens would raise questions on how wealth was created
- High inflation rate
- Legal framework e.g fiscal policies
Kavungya answered the question on December 14, 2021 at 08:43
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