China and the Middle Income Trap

2016 ◽  
Vol 08 (03) ◽  
pp. 78-86 ◽  
Author(s):  
John WONG

Is China falling into the “middle-income trap” (MIT) with its current economic slowdown? Extrapolating from its 2015 per capita income of US$8,300 and benchmarking a developed economy at US$16,000, China would become a developed economy within 10 years with a reasonably strong growth of around 6%. China’s impressive R&D efforts and industrial upgrading towards “intensive manufacturing” could help it cross the MIT; however, it may run into a new kind of trap, the “low-income developed-economy trap”.

2017 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Asmirawati Asmirawati

This paper aims to analyze middle income trap in Indonesia where per capita income is the main indicator in determining whether a country is included in the middle income category or not. By looking at the effect of high technology products , education level, direct investment and dependent ratio on per capita income in Indonesia. The results of this model use the ordinary least square method, which shows that the export of high-tech products has a positive and significant effect on per capita income, the level of education has a positive and significant effect on per capita income, direct investment has a negative and significant effect on per capita income, the ratio has a positive and significant effect. income per capita and high-tech product exports, level of education, direct investment, and the ratio have a significant effect on income per capita in Indonesia.


2019 ◽  
Vol 3 (Supplement_1) ◽  
Author(s):  
Sara Benjamin-Neelon ◽  
Sarah Gonzalez-Nahm ◽  
Brian Neelon

Abstract Objectives The Baby-Friendly Hospital Initiative (BFHI) is a global effort designed to enhance the health of mothers and their newborn infants by protecting, promoting, and supporting breastfeeding. Evidence has shown that BFHI hospitals can help reduce disparities in breastfeeding rates—especially in low-income communities. We aimed to evaluate the geographic distribution of BFHI hospitals, considering the socioeconomic factors of income and unemployment in the US. Methods We considered all hospitals within each state. We categorized hospitals as having the BFHI designation (“established”), being on the formal path to obtaining this designation (“emerging”), and not having the designation. We obtained a list of hospitals from the American Hospital Association's annual survey and information on BFHI designation from Baby-Friendly USA. We further obtained state-level employment and income information from census data and ranked states into quintiles for each variable. We then conducted separate one-way analysis of variance tests to compare the mean % of BFHI hospitals and mean state-level 1) per capita income, and 2) unemployment rates separated into quintiles. We examined all BFHI hospitals that were established and emerging separately. Finally, we created maps using ArcGIS, overlaying the location of all hospitals on the socioeconomic data. Results Our sample included 2,589 hospitals from all US states and the District of Columbia. Of those, 519 were established BFHI hospitals (Figure 1) and 298 were emerging (Figure 2). We found that higher unemployment was associated with a greater percentage of emerging but not established BFHI hospitals were present in states in the highest quintile for unemployment (P = 0.01). Similarly for income, we observed a greater percentage of emerging BFHI hospitals in states with both the lowest and highest quintiles of per-capita income (P = 0.003). Conclusions Emerging BFHI hospitals were present at a higher percentage in states in the highest quintile for unemployment and the lowest quintile for income. These emerging hospitals are on the pathway to achieving the BFHI designation, which may ultimately help reduce socioeconomic disparities in breastfeeding. Interestingly, states in the highest quintile for income also had a high percentage of emerging BFHI hospitals. Funding Sources W.K. Kellogg Foundation. Supporting Tables, Images and/or Graphs


2021 ◽  
Vol 21 (45) ◽  
Author(s):  
Paola Ganum ◽  
Vimal Thakoor

Covid-19 has exacerbated economic and social vulnerabilities across Sub-Saharan Africa (SSA). There is a risk that growth could be lower for longer, with a setback to development. Post-pandemic reforms thus become even more important, especially with constrained scope for fiscal and monetary stimuli. Reforms could boost per capita growth by an additional 0.3-1.3 percentage points, relative to the 1.9 percent average since 2010. Such growth would reduce per capita income doubling time from 37 years to about 22 years. Low-income countries stand to gain the most from reforms. The largest gains come from governance, products markets, and factor accumulation. Importantly, these reforms can be implemented in the post-pandemic environment characterized by weaker social and distributional outcomes.


1972 ◽  
Vol 4 (1) ◽  
pp. 229-245 ◽  
Author(s):  
Clark Edwards ◽  
Robert Coltrane

A disproportionately large share of our economic development problems, involving maldistributions of population, employment, and income, is found in rural areas. Although these problems directly affect the residents of rural areas, they are linked to economic problems in urban areas. Per capita income comparisons indicate the differential effects of economic development on the population. For example, per capita incomes of residents outside metropolitan areas are only about 71 percent of those in the orban-oriented ones. In addition, about one-third of all families live in nonmetropolitan areas, but over half of all low income families live there. Further, large geographic areas such as the Appalachian, Mississippi Delta, and Ozark regions are below the Nation as a whole in terms of the general level of economic development. Even in the urban centers of these rural regions, the average resident has not commensurately participated in the benefits derived from our Nation's economic development and growth. Comparisons of per capita income for different years show these maldistributions have persisted for decades.


2004 ◽  
Vol 9 (5) ◽  
pp. 663-693 ◽  
Author(s):  
HEINZ WELSCH

The relationship between per capita income and a number of pollution indicators has been found to display an inverted U-shaped or downward-sloping pattern. Corruption may affect this relationship in two distinct ways: by raising pollution at given income levels (direct effect) and by reducing per capita income (indirect effect). The total effect is ambiguous a priori. Using cross-section data for several indicators of pollution, the paper estimates the direct and the indirect effect of corruption on pollution. The indirect effect via income is positive or negative depending on the income level. If negative, the indirect effect is dominated by the positive direct effect. Overall, our measures of pollution are monotonically increasing in corruption. Because this relationship is particularly strong at low income levels, developing countries can considerably improve both their economic and environmental performance by reducing corruption.


2017 ◽  
Vol 8 (3) ◽  
pp. 35-43
Author(s):  
Kabiru Jinjiri Ringim ◽  
Sayedi Ndagi Shuaib

Abstract This study investigated the influence of social capital on members′ consumption per capita income and poverty alleviation in Cooperative Thrift and Credit Society of Federal Polytechnic Bida, Niger state- Nigeria. Low income level and poverty influence the employees of the polytechnic to partake in cooperative society through the contribution of money/credit referred to as social capital. Data were collected using field research survey approach involving hand delivery of questionnaire. Simple random technique of probability sampling method was used to draw a sample size of 255 members from the population of 702 academic and non- academic members of the cooperative society. The regression results indicated that social capital dimension such as educational qualification and membership duration has significant influence on consumption while social capital indicator such as income and educational qualification has significant influence on poverty alleviation. Other variables such as gender, marital status, work status and savings were insignificant. The study therefore recommends that regulators and policy makers should encourage savings mobilization from members′ income or salary in order to boost consumption and alleviate poverty. This is because income has insignificant influence on consumption and significant influence on poverty alleviation in Cooperative Thrift and Credit Society of Federal Polytechnic Bida, Niger state. The results of this study are unique and worth in solving problems that are facing cooperative associations in Nigeria.


Subject Economic prospects. Significance With per capita income of some 3,600 dollars, Indonesia is at the lower end of the World Bank's 1,000-12,700 dollar range for middle-income countries. There is growing concern that rising protectionism and uncertainty regarding economic and administrative reforms could impede gains in productivity, innovation and competitiveness. A sustained decline in competitiveness would risk a 'middle-income trap' as investment and growth slow, and incomes stagnate. Impacts Indonesia's inward-looking economic policy risks impeding progress on infrastructure, skills and industrial innovation. Competitors such as Malaysia and Thailand would gain if Indonesia fails to boost its competitiveness. Stagnant education and skills levels carry instability risks given Indonesia's youth bulge.


2020 ◽  
Vol 55 (3) ◽  
pp. 323-335 ◽  
Author(s):  
Vadim Radaev ◽  
Yana Roshchina ◽  
Daria Salnikova

Abstract Aim Previous studies on youth drinking showed opposite trends for high-income and low-income countries. In Russia, a recent decline was observed in the prevalence of alcohol use, particularly among younger cohorts. This study aims at disentangling age and birth cohort effects to better understand the dynamics of abstinence and the volume of alcohol consumption. Methods Data were collected from annual nationally representative panel surveys from 2006 to 2017. Data included 34,514 individuals aged 14–80. We estimated mixed-effects binary-choice models for percentage of abstainers and mixed-effects linear models with Heckman correction for alcohol volume. Integer variables of age and age-squared were used. Period was defined with a dummy variable using 2012 as the dividing line associated with a new Russian alcohol policy. Birth cohorts were defined as 13 groups from 1930–1939 to 2000–2003. Controls were per capita income, education, marital status, composition of households, body weight, ethnicity, residence type, regional per capita income and regional climate. Results In both genders, percentage of abstainers increased and drinking volumes declined. Age for both genders showed u-shaped trend for abstinence and inverse u-shaped trend for alcohol volume. Controlling for age effects, cohorts born after 1990 demonstrated the strongest increase in abstinence for both genders and the strongest decrease in alcohol volume for males. The period of 2012–2017 had the effect of increasing the abstinence and decreasing the alcohol volume. Conclusion Downward trend in alcohol consumption in Russia is partially attributable to increased abstinence and reduced alcohol volume among younger cohorts.


2020 ◽  
Vol 12 (23) ◽  
pp. 9968
Author(s):  
Hugo T. Y. Yoshizaki ◽  
Irineu de Brito Junior ◽  
Celso Mitsuo Hino ◽  
Larrisa Limongi Aguiar ◽  
Maria Clara Rodrigues Pinheiro

Panic buying and hoarding express common human behavior in times of crisis. Early in COVID-19, as the pandemic crisis intensified, toilet paper was one of the emblematic cases of panic buying. Using a Geographic Information System (GIS) to cross official per capita income data and real toilet paper transactions obtained from groceries spread around the city of São Paulo (Brazil), this study compares sales levels during the period in which panic purchases took place to the sales levels off that period. As expected, that data disclose noticeable panic buying. Regression analysis reveals that there is a significant positive correlation between average income per capita and panic buying. The results also indicate that panic buying happens in every income class, including low-income ones and contribute to enhancing the understanding of demand behavior during periods of crisis.


2017 ◽  
Vol 11 (3) ◽  
pp. 289-312
Author(s):  
Sandhya S. Iyer ◽  
K. Seeta Prabhu

The Integrated Poverty Index (IPI) is a summary measure of poverty/deprivation that includes “poor” across economic, education and health/nutrition-related dimensions. Estimates across three decades since 1991 show a slow reduction in IPI, notably in mainly small states with middle per capita income. The growth–poverty linkage seems to be dwindling away. States with higher per capita income have not been able to reduce their IPI values in recent times, raising concerns of “IPI-trap”. Further, low-income states have been at the same level of IPI and PCNSDP for the past two decades raising concerns of both growth-led and development-led initiatives. The paper concludes that since there is a strong “income and population effect” to IPI reduction, there is a need to build synergies to secure sustainable capabilities expansion.


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