Governments in developing countries can hinder economic growth by:

Question

Quizplus · Accepted Answer

All of the given options can hinder economic growth in developing countries for the following reasons:
A) Export taxes can raise production costs, reduce competitiveness in international markets, and discourage foreign investment.
B) Restrictive financial regulations can limit access to credit for local businesses, discourage foreign investment, and reduce the efficiency of the financial sector.
C) High inflation can reduce purchasing power, create uncertainty, discourage savings, and increase interest rates, which can reduce investment and growth. Therefore, pursuing any or all of these policies can hinder economic growth in developing countries.

Governments in Developing Countries Can Hinder Economic Growth By