scholarly journals DO DEVELOPING COUNTRIES FACE THE “MIDDLE INCOME TRAP”? EVIDENCE FROM A NOVEL UNIT ROOT TEST

2019 ◽  
Author(s):  
Aycan Hepsag ◽  
◽  
Barış Erkan Yazici ◽  
Keyword(s):  
Developing Countries ◽  
Unit Root ◽  
Unit Root Test ◽  
Middle Income ◽  
Middle Income Trap

scholarly journals THE WEAK FORM MARKET EFFICIENCY IN THE MSCI ETF INDICES: CONVENTIONAL AND THE FOURIER UNIT ROOT TEST ON THE DEVELOPED AND DEVELOPING COUNTRIES

2020 ◽  
Vol 8 (4) ◽  
pp. 409-423
Author(s):  
Sümeyra GAZEL
Keyword(s):  
Developing Countries ◽  
Unit Root ◽  
Structural Break ◽  
Unit Root Test ◽  
Weak Form ◽  
Efficient Market Hypothesis ◽  
Developed Countries ◽  
Exchange Traded Funds ◽  
Unit Root Testing ◽  
Daily Data

In this study, weak form efficiency of the Exchange Traded Funds (ETF) in the Morgan Stanley Capital International (MSCI) Index of developed and developing countries is tested. The Fourier Unit Root test, which does not lose its predictive power in terms of structural break date, number and form, is used on daily data. Also, conventional unit root tests are used for comparison between two different tests. Analysis results indicate common findings in some countries for both unit root testing. However, the Fourier unit root test results relatively more support the assumption of efficient market hypothesis that developed countries may be more efficient than developing countries.

scholarly journals ASSESSMENT OF THE POSSIBILITY OF A MIDDLE-INCOME TRAP IN TURKEY

2020 ◽  
Vol 7 (4) ◽  
pp. 331-348
Author(s):  
Ali Cem ÖZTÜRK ◽  
Burcu YAVUZ TİFTİKÇİGİL
Keyword(s):  
World Bank ◽  
Unit Root Test ◽  
Income Group ◽  
Current Data ◽  
Middle Income ◽  
The World Bank ◽  
The World ◽  
Middle Income Group ◽  
Middle Income Trap ◽  
Atlas Method

Turkey has been under the middle-income country category according to the income category classification of the World Bank. Turkey promoted to high-middle-income group in 2005 after spending more than 50 years in lower-middle-income group. The purpose of this study is to identify the presence of middle-income trap in Turkey. The study brings together the most recent theoretical studies from different perspectives with respect to the presence of MIT in Turkey along with Robertson and Ye approach in the empirical phase. Within the context of this study, structural break unit root test using current data obtained through the Atlas method is applied in order to evaluate Turkey’s middle-income trap status. The GNI per capita Atlas Method (current US $) data of the World Bank for the years 1967-2016 are used in the study. The empirical analysis briefly showed that Turkey is not in the MIT.

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.

scholarly journals GROWTH SLOWDOWNS AND MIDDLE-INCOME TRAP: EVIDENCE FROM NEW UNIT ROOT FRAMEWORK

2020 ◽  
pp. 1-17
Author(s):  
FUMITAKA FURUOKA ◽  
KIEW LING PUI ◽  
CHINYERE EZEOKE ◽  
RAY I. JACOB ◽  
OLAOLUWA S. YAYA
Keyword(s):  
Unit Root ◽  
Structural Break ◽  
Testing Procedure ◽  
Policy Implications ◽  
Unit Root Tests ◽  
Cross Sectional ◽  
Middle Income ◽  
Middle Income Countries ◽  
Middle Income Trap ◽  
High Possibility

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.

Assessing the effectiveness of the policies to boost hydropower consumption

2015 ◽  
Vol 9 (2) ◽  
pp. 136-155 ◽  
Author(s):  
Sakiru Solarin
Keyword(s):  
Developing Countries ◽  
Unit Root ◽  
Unit Root Test ◽  
Unit Roots ◽  
Total Sample ◽  
Policy Implications ◽  
Data Generation ◽  
Hydroelectric Power ◽  
Content Type ◽  
Non Linear

Purpose – This paper aims to investigate, with the view to determine the effectiveness of blueprints that are designed to boost hydroelectricity use, the unit root properties of hydroelectricity consumption in 50 countries for the period from 1965 to 2012. Design/methodology/approach – A newly proposed non-linear unit root test is used for the purpose of estimations. Findings – The results show that 26 countries (which are mostly developing countries) or 52 per cent of the total sample have unit roots in their hydroelectricity consumption series. Practical implications – The policy implication of these results is that policies associated with the enhancement of hydroelectric power use are likely to be effective in several cases, especially in the developing countries. Originality/value – The main contribution of this paper is that we estimate the non-stationarity of hydroelectricity series within a non-linearity framework. Failure to use a non-linearity method in the presence of non-linear data-generation processes will create biased inferences and wrong policy implications.

scholarly journals Middle Income Trap and Challenges Facing Developing Countries

2019 ◽  
Author(s):  
Nguyen Quynh Huy
Keyword(s):  
Developing Countries ◽  
Research And Development ◽  
Human Resource ◽  
Development Process ◽  
Resource Quality ◽  
Middle Income ◽  
Middle Income Countries ◽  
Development Experience ◽  
Development Context ◽  
Middle Income Trap

The middle-income trap is becoming a topic that attracts many governments’ interest. The development experience has shown that only a few countries have succeeded in escaping the middle-income trap since 1960s. The paper focuses on the differences in the development context between current middle-income countries and the groups of countries that have successfully industrialized. Research results show that countries escaped the middle-income trap had higher human resource quality, especially the proportion of people involved in research and development activities. They also had lower inequality and informal sector. In particular, these countries had a deeper linkage with the foreign invested sector in upgrading technology during the development process. Therefore, the paper points out the important prepositions that current middle-income countries need to implement if they want to overcome the middle-income trap

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