scholarly journals Middle-Income Traps: A Conceptual and Empirical Survey

2015 ◽  
Vol 06 (03) ◽  
pp. 1550013 ◽  
Author(s):  
Fernando Gabriel Im ◽  
David Rosenblatt

The term "middle-income trap" has entered common parlance in the development policy community, despite the lack of a precise definition. This paper discusses in more detail the definitional issues associated with the term. It also provides evidence on whether the growth performance of middle-income countries (MICs) has been different from other income categories, including historical transition phases in the inter-country distribution of income. A transition matrix analysis and an exploration of cross-country growth patterns provide little support for the existence of a middle-income trap.

Author(s):  
Timothy Yaw Acheampong

In recent times, the middle-income trap (MIT) has become a pertinent issue as economists, researchers and development practitioners continue seek answers to why the majority of middle-income countries find it difficult to advance to high-income status. There is still no consensus in literature as to the exact cause(s) and the solution to the MIT. The World Economic Forum posits that, the score of countries on the Global Competitive Index (GCI) 4.0 accounts for over 80% of the variation in income levels of countries. This suggests that the extent of global competitiveness of countries could potentially help them to escape the MIT. However, some competitiveness literature have identified an apparent competitiveness divide among countries. This paper therefore seeks to answer the following questions: how does middle-income countries differ from the high-income countries in terms of global competitiveness. The study utilises an independent samples t-test and effect size measures to examine the GCI 4.0 scores of 140 countries. The study finds a very large and significant competitiveness divide between the high and middle-income countries.


2020 ◽  
Author(s):  
Irene van Staveren

Abstract BackgroundAccording to the Global Burden of Disease 2016 project, migraine ranks first for 15-49 years and second for all ages. The project has reported no significant relation with socio-economic status of a country. To the contrary, migraine ranks first for all ages in low- and middle-income countries suffering from civic unrest and conflict. This raises the question whether external stress factors may be correlated with migraine years lived with disability (YLD).MethodsIn the absence of cross-country studies on migraine and stress, this is a unique exploratory study. The analysis uses two country groups: developed countries (including some middle-income countries) and developing (middle- and low-income) countries. For the first group, proxy variables for stress are included that relate to flexible and highly competitive labour markets (productivity and unemployment), whereas for the second group, proxy variables are used that relate to conflict and migration. The data were analysed with multiple ordinary least squares cross-section regressions.ResultsThe results show a positive relationship between the stress variables on the one hand and migraine YLD on the other hand for both country groups. Almost all results are statistically significant at p<0.01.ConclusionsThe findings from the exploratory cross-country analysis suggest that societal stress factors may be potential candidates for modifiable factors for the prevalence and severity of migraine at the country level.


2020 ◽  
pp. 1-17
Author(s):  
FUMITAKA FURUOKA ◽  
KIEW LING PUI ◽  
CHINYERE EZEOKE ◽  
RAY I. JACOB ◽  
OLAOLUWA S. YAYA

This paper suggests a new testing procedure to systematically examine the middle-income trap (MIT). To empirically demonstrate this procedure, one high income and 14 middle-income countries are examined using newly developed unit root tests — Fourier ADF with structural break (FADF-SB) and Seemingly Unrelated Regressions Fourier ADF (SUR-FADF). The FADF-SB test incorporates unknown nonlinearity and smooth break in the time-series, while the SUR-FADF test accounts for cross-sectional dependency. The empirical findings produced mixed results: 10 countries have a relatively high possibility of facing the MIT problem, while only one country has a relatively low possibility of facing the problem. For the remaining three countries, it is uncertain whether they will face the problem of MIT. These empirical findings have significant policy implications.


2017 ◽  
Vol 27 (1) ◽  
pp. 29-39 ◽  
Author(s):  
H. Lempp ◽  
S. Abayneh ◽  
D. Gurung ◽  
L. Kola ◽  
J. Abdulmalik ◽  
...  

Aims.The aims of this paper are to: (i) explore the experiences of involvement of mental health service users, their caregivers, mental health centre heads and policy makers in mental health system strengthening in three low- and middle-income countries (LMICs) (Ethiopia, Nepal and Nigeria); (ii) analyse the potential benefits and barriers of such involvement; and (iii) identify strategies required to achieve greater service user and caregiver participation.Methods.A cross-country qualitative study was conducted, interviewing 83 stakeholders of mental health services.Results.Our analysis showed that service user and caregiver involvement in the health system strengthening process was an alien concept for most participants. They reported very limited access to direct participation. Stigma and poverty were described as the main barriers for involvement. Several strategies were identified by participants to overcome existing hurdles to facilitate service user and caregiver involvement in the mental health system strengthening process, such as support to access treatment, mental health promotion and empowerment of service users. This study suggests that capacity building for service users, and strengthening of user groups would equip them to contribute meaningfully to policy development from informed perspectives.Conclusion.Involvement of service users and their caregivers in mental health decision-making is still in its infancy in LMICs. Effective strategies are required to overcome existing barriers, for example making funding more widely available for Ph.D. studies in participatory research with service users and caregivers to develop, implement and evaluate approaches to involvement that are locally and culturally acceptable in LMICs.


2017 ◽  
Vol 8 (1) ◽  
pp. 58-70 ◽  
Author(s):  
Ioannis A. Tampakoudis ◽  
Demetres N. Subeniotis ◽  
Ioannis G. Kroustalis ◽  
Manolis I. Skouloudakis

Abstract The determinants of FDI have been examined extensively in the literature; however, the empirical findings are inconclusive and often diverging. Developing and emerging countries have attracted the bulk of FDI inflows since the early 2000s, subsequently improving their economic level. Nevertheless, many middle-income countries got stuck in the middle-income trap, failing to make the transition to the high-income level. The study investigates the effects of certain determinants on FDI inflows to middle-income countries, with respect to avoiding the middle-income trap. We employ a panel data analysis for fifteen middleincome countries gathering data from 1980 onwards. The results highlight the significance of trade openness, GDP and population growth on inward FDI, while financial development, inflation, infrastructure and fuel exports are found to be insignificant. Empirical findings may force governments to apply policies in certain areas, with the aim of attracting further FDI while at the same time escaping the middle-income trap.


2013 ◽  
Vol 17 (9) ◽  
pp. 2131-2137 ◽  
Author(s):  
Elizabeth A Lundeen ◽  
Jere R Behrman ◽  
Benjamin T Crookston ◽  
Kirk A Dearden ◽  
Patrice Engle ◽  
...  

AbstractObjectiveWe characterized post-infancy child growth patterns and determined the incidence of becoming stunted and of recovery from stunting.DesignData came from Young Lives, a longitudinal study of childhood poverty in four low- and middle-income countries.SettingWe analysed length/height measurements for children at ages 1, 5 and 8 years.SubjectsChildren (n 7171) in Ethiopia, India, Peru and Vietnam.ResultsMean height-for-age Z-score (HAZ) at age 1 year ranged from −1·51 (Ethiopia) to −1·08 (Vietnam). From age 1 to 5 years, mean HAZ increased by 0·27 in Ethiopia (P < 0·001) and decreased among the other cohorts (range: −0·19 (Peru) to −0·32 (India); all P < 0·001). From 5 to 8 years, mean HAZ increased in all cohorts (range: 0·19 (India) to 0·38 (Peru); all P < 0·001). Prevalence of stunting (HAZ<−2·0) at 1 year ranged from 21 % (Vietnam) to 46 % (Ethiopia). From age 1 to 5 years, stunting prevalence decreased by 15·1 percentage points in Ethiopia (P < 0·001) and increased in the other cohorts (range: 3·0 percentage points (Vietnam) to 5·3 percentage points (India); all P ≤ 0·001). From 5 to 8 years, stunting prevalence decreased in all cohorts (range: 5·0 percentage points (Vietnam) to 12·7 percentage points (Peru); all P < 0·001). The incidence of becoming stunted between ages 1 to 5 years ranged from 11 % (Vietnam) to 22 % (India); between ages 5 to 8 years, it ranged from 3 % (Peru) to 6 % (India and Ethiopia). The incidence of recovery from stunting between ages 1 and 5 years ranged from 27 % (Vietnam) to 53 % (Ethiopia); between ages 5 and 8 years, it ranged from 30 % (India) to 47 % (Ethiopia).ConclusionsWe found substantial recovery from early stunting among children in four low- and middle-income countries.


2020 ◽  
pp. 94-116
Author(s):  
Richard Doner ◽  
Ross Schneider

The policies and institution building needed to overcome the middle-income trap are costly, lengthy, and difficult. At the same time, major social groups in many middle-income countries are fragmented—especially in terms of business and labor—impeding and complicating coalition building. This chapter looks first at these disarticulation politics and how they affect outcomes such as low taxation, and then turns to some exceptional cases of centripetal politics and coalition building in quality infrastructure (testing and research centers) in Asia and vocational and technical education in Turkey and Latin America.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Nabeel Safdar ◽  
Tian Lin ◽  
Saba Amin

Purpose This study, a symposium, aims to explore the determinants of financial inclusion, impact of cross-country income-variations on financial inclusion, do high-income countries really uplift the financial inclusion and does the higher financial inclusion index indicate the larger economy? Design/methodology/approach This study adopts the panel data model to investigate the impact of high-income countries and low- and middle-income countries on financial inclusion. However, this study further adopts the principal component analysis rather than Sarma’s approach to calculate the financial inclusion index. Findings Based on the Data of World Bank, United Nations, International Monetary Fund, World Development Indicators, this study concludes that there is no nexus between income variations and financial inclusion, as the study reveals that some low- and middle-income countries have greater financial inclusion index such as Thailand (2.8538FII), Brazil (1.9526FII) and Turkey (0.8582FII). In low- and middle-income countries, the gross domestic product per capita, information technology and communication, the rule of law, age dependency ratio and urbanization have a noteworthy impact on financial inclusion that accumulatively describe the 83% of the model. Whereas, in high-income countries, merely, information technology and urbanization have a substantial influence on the growth of financial revolution and financial inclusion that describes the 70% of the total. Research limitations/implications The biggest limitation is the availability of data from different countries. Originality/value The originality of this paper is its technique, which is used in this paper to calculate the financial inclusion index. Furthermore, this study contributes to 40 different countries based on income, which could help to boost financial inclusion, and ultimately, it leads them toward economic growth.


Sign in / Sign up

Export Citation Format

Share Document