Developing countries are damaged by dead capital because

Question

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Dead capital refers to assets that cannot be used or traded to their full potential. In developing countries, such as those with weak property rights systems or limited access to credit, dead capital often takes the form of unregistered or undocumented property. This results in inefficiencies and lack of investment, which greatly reduce the rate of return on capital investment. Thus, developing countries are damaged by dead capital because it results in significant economic losses.

Developing Countries Are Damaged by Dead Capital Because