factors contributing to gap

• What is a common issue with domestic savings in developing countries?

  They often have low levels of domestic savings
• Why do developing countries have low domestic savings rates?

  Due to low income levels and high consumption rates
• What additional factor contributes to low domestic savings in developing countries?

  Limited access to banking services
• What challenge do many developing countries face regarding foreign capital?

  They struggle to attract foreign investment
• How does limited access to foreign capital affect developing countries?

  It limits their ability to bridge the Savings Gap
• What can deter both domestic and foreign investment in developing countries?

  Political instability and economic uncertainty
• Why is political instability a concern for investment in developing countries?

  It can deter both domestic and foreign investment
• How does economic uncertainty affect investment in developing countries?

  It can deter both domestic and foreign investment