scholarly journals Catching up, falling behind: the need to build upgrading coalitions for innovation and inclusive development in South Africa

Nova Economia ◽  
2020 ◽  
Vol 30 (spe) ◽  
pp. 1115-1144
Author(s):  
Glenda Kruss
Keyword(s):  
South African ◽  
Informal Economy ◽  
Local Economic Development ◽  
Inclusive Development ◽  
Middle Income ◽  
Catching Up ◽  
Open Debate ◽  
Catch Up ◽  
Middle Income Trap ◽  
Income Concentration

Abstract Through analysis of the South African case, a country stalled in a middle income trap, the paper aims to add to the literature on catch-up. It uses Albuquerque’s (2019) model of the vicious cycles arising from inequality and income concentration, together with the notion of ‘upgrading coalitions’ (Doner and Schneider 2016) required to challenge these vicious cycles, to analyse the persistence of lock-ins. It then analyses a global astronomy project, a ‘window of opportunity’ building on historically grown capabilities, promoted by ‘upgrading coalitions’ operating in the national interest. In contrast, it proposes a ‘detour’ to build domestic capabilities, driven by an upgrading coalition centred on local economic development and livelihoods in the informal economy. The paper aims to reinforce the evidence on how inequality is both a cause and consequence of a middle income trap, and open debate on how upgrading coalitions may be a critical strategy for breaking lock-ins.

scholarly journals Creating your own path to move beyond the middle-income trap: lessons from Korea

Nova Economia ◽  
2020 ◽  
Vol 30 (spe) ◽  
pp. 1145-1167
Author(s):  
Paulo Henrique Assis Feitosa
Keyword(s):  
Developing Countries ◽  
Policy Implication ◽  
New Technologies ◽  
Technological Development ◽  
Policy Implications ◽  
Middle Income ◽  
Income Status ◽  
Development Experience ◽  
Catch Up ◽  
Middle Income Trap

Abstract The development experience observed in Korea has been a symbol of successful catch-up for several decades. This process allowed its upward transition from middle income to high-income status and has drawn the attention of many streams of scholars. More recently, emergent research has improved our understanding of this experience and its policy implications for developing countries (Lee, 2013; 2016; 2019). This paper proposes a review of what this literature has to say about the mechanisms behind the successful path followed by Korea and a discussion of lessons to overcome the middle-income trap. It is argued that latecomers do not limit themselves to follow the path of technological development of the advanced countries and that alternative paths are possible. The main policy implication for latecomers is that a successful catch-up is possible yet difficult to achieve because it requires taking detours and leapfroging into new technologies.

China's Technological Leapfrogging and Economic Catch-up

2021 ◽  
Author(s):  
Keun Lee
Keyword(s):  
Middle Income ◽  
Technological Gap ◽  
Beijing Consensus ◽  
Thucydides Trap ◽  
Catch Up ◽  
Middle Income Trap ◽  
Growing Economy ◽  
Technological Leapfrogging ◽  
Rising Power ◽  
Key Terms

After a miraculous economic growth, spurred by the Beijing Consensus, China is now facing a slowdown. This book deals with the interesting issue of the middle-income trap—the phenomenon of the rapidly growing economy of a country stagnating at the middle-income level—in the context of China. It also discusses China’s limitations and future prospects, especially after the onset of a new “cold war” between China and the US, and in particular whether it would fall into the “Thucydides trap,” the conflict between a rising power and the existing hegemon. This book plays around three key terms, the Beijing Consensus, the middle-income trap, and the Thucydides trap, and applies a Schumpeterian approach to these concepts. It also conducts a comparative analysis examining China from an “economic catch-up” perspective. Economic catch-up starts with learning from and imitating a forerunner, but a successful catch-up requires leapfrogging, which implies a latecomer doing something different from, and often ahead of, a forerunner. Technological leapfrogging may lead to technological catch-up, which means reducing the technological gap, and then to economic catch-up in living standards and economic size. This linkage between technological and economic catch-up corresponds exactly with a similar linkage between the Beijing Consensus and escaping (or not) the middle-income and Thucydides traps. The book concludes that China’s successful rise as a global industrial power has been due to its strategy of technological leapfrogging, which has enabled it to move beyond the middle-income trap and possibly the Thucydides trap, although at a slower speed.

The Coming Demographic Impact on China's Growth: The Age Factor in the Middle-Income Trap

2012 ◽  
Vol 11 (1) ◽  
pp. 95-111 ◽  
Author(s):  
Fang Cai
Keyword(s):  
Economic Growth ◽  
Comparative Advantage ◽  
Demographic Transition ◽  
Middle Income ◽  
Stage Of Development ◽  
Catching Up ◽  
Speed Up ◽  
Middle Income Trap ◽  
Demographic Impact ◽  
Capital Intensive

Thanks to successful economic growth, social development, and strict implementation of family planning policies, the demographic transition in China has been accomplished at a much earlier stage of development than in other countries. I call this outcome “aging before affluence.” As a result of this demographic transition, China has already passed through its Lewis turning point, and its demographic dividend from the decline in the population dependence ratio is about to end. I identify a potential nexus between “aging before affluence” and the “middle-income trap.” China is losing comparative advantage in labor-intensive industries, but China is not ready to gain comparative advantage in technology-intensive and capital-intensive industries. For China to avoid the middle-income trap, it must (1) transform economic growth to a consumption-driven pattern; (2) shift the labor-intensive industries to the central and western regions; and (3) speed up technological catching up.

scholarly journals Beyond catch-up—can a new innovation policy help China overcome the middle income trap?

2017 ◽  
Vol 44 (5) ◽  
pp. 656-669 ◽  
Author(s):  
Xielin Liu ◽  
Sylvia Schwaag Serger ◽  
Ulrike Tagscherer ◽  
Amber Y. Chang
Keyword(s):  
Innovation Policy ◽  
Middle Income ◽  
Catch Up ◽  
Middle Income Trap
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