Capital that is not dissipated in conspicuous consumption or used for financing land transactions may not be available for industrial uses in developing countries because it is invested instead in speculative commercial undertakings.
The quick turnover usually involved in such activities affords opportunities for speedy liquidation which are greatly valued under conditions of uncertainty. In comparison with industrial activities, moreover, they are simpler both to start and to operate. And, in some countries, they are in a better position to escape taxation and various government controls.