help please!!?

Question

why is the shortage of investment capital more of a problem for developing countries than for the world's developed ones?

Answer 1

There are many reasons. In developing countries the wage rates are very low and expenses very high on low purchasing power of the local currency. So the savings in banks will be very low which can be lend out for investments. Two, there won't be organised stock exchages or Investment Bankers in these countries for primary market or secondary market for securities to exists depriving companies to raise funds using stocks or bonds.
Then there are many other reasons which are little complicated but the truth.