Economic Impact Of Financial Scams On Emerging Economies: A Legal Review

Abstract

Financial scams pose significant threats to the economic stability and growth of emerging economies. These fraudulent activities undermine investor confidence, distort market efficiency, and divert scarce resources away from productive investments. This legal review examines the economic repercussions of financial scams in emerging markets, focusing on their impact on GDP growth, foreign direct investment (FDI), and financial sector integrity. The study also evaluates the effectiveness of existing legal frameworks in mitigating such scams and proposes policy recommendations to strengthen regulatory oversight, enhance transparency, and promote investor protection. By analyzing case studies from select emerging economies, the paper highlights the urgent need for robust legal and institutional reforms to combat financial fraud and foster sustainable economic development.