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by perl4ever
2221 days ago
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Because you don't have a truck? And maybe you don't have a truck, because there are no roads. And there are no roads, because there is no nearby marketplace. And there is no big market, because there is nobody with capital to invest in that. |
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If you are simply saying that there are countries which are poor because there is nobody with capital, first, that's still not a problem of "high transaction costs", it's a problem of lack of capital. And second, the problem isn't even lack of capital, since there are plenty of people in rich countries who would be glad to invest capital in poor countries--if the corrupt governments of those poor countries weren't going to steal everything of value that got invested. So we're still looking at a problem of government corruption, not "high transaction costs".