Is this due to taxes or is it more fundamental

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Q. Y at PPP is only 0.05. It is well-known that investment rate dierenHSL39502.bmpe when measured at a common set of prices while very small when measured at domestic prices. Evidently, domestic price of investment goods is high relative to consumption in poorer countries. Why? Is this due to taxes or is it more fundamental?

Reference no: EM1369688

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