scholarly journals A Study on the Relationship between Developing Countries and the Middle-Income Trap: A Nar-rative in the Zambian Perspective

2021 ◽  
Vol 12 (02) ◽  
pp. 363-384
Author(s):  
Brian Kapotwe
Keyword(s):  
Developing Countries ◽  
Middle Income ◽  
Middle Income Trap ◽  
The Relationship

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.

Global Value Chains, Preferential Trade, and the Middle-Income Trap

2020 ◽  
pp. 297-317
Author(s):  
Renato Baumann
Keyword(s):  
Regional Integration ◽  
Western Europe ◽  
Policy Issue ◽  
Global Value Chains ◽  
Value Chains ◽  
Preferential Trade ◽  
Middle Income ◽  
The Subject ◽  
Middle Income Trap ◽  
The Relationship

After a period of rapid growth, developing countries often experience a slowdown in growth and productivity, falling into what has come to be known as the “‘middle-income trap.” Production chains in East Asia, North America, and Western Europe have imposed a new model of production. Participating in global value chains became a policy issue. Market friendly trade policies—be it multilateral reductions of tariff and non-tariff barriers or preferential trade agreements with selected economies—are an essential part of this model. The relationship between value chains and regional integration has gained momentum, partly because participation in value chains is identified as a source of competitiveness, much needed for economies facing the middle-income trap. The relationship between preferential trade and participation in value chains as a means to deal with the middle-income trap is the subject of this chapter.

scholarly journals Middle Income Trap and Balance of Payments Constraint in the Turkish Economy

2015 ◽  
Author(s):  
Zekayi Kaya ◽  
Erkan Tokucu ◽  
Murat Aykırı ◽  
Cahit Durmuş
Keyword(s):  
Growth Rates ◽  
High Income ◽  
Balance Of Payments ◽  
The Other ◽  
Middle Income ◽  
Global Competitiveness ◽  
Turkish Economy ◽  
Middle Income Trap ◽  
The Relationship ◽  
Policy Proposals

Since the 1980’s, the growth rates have been continuously fluctuating because of internal and external economic and politic developments. These fluctuating - low growth rates led to a discussion on the middle income trap which is an outcome of low growth rates in Turkey. According to the some indicators, there is a middle income trap in the Turkish economy and the competitiveness of the economy has been decreasing in the international area because of the trap. It is seen that especially technology and innovations are the prominents factors that the governments have to take into account. This study is on the middle income trap in Turkey. In this context, firstly, the definitions of income traps, income grups, and the middle income trap will be given. Second, the causes of the middle income trap and the exit strategies from the trap will be expressed. Third, some indicators of the economy will be examined and compared with the high middle income and the high income countries. Fourth, the rank of the Turkish economy in the global competitiveness indeks will be shown and compared with the other countries. Fifth, the relationship between the middle income trap and the balance of payments will be investigated in context of the Thirlwall Rule. Finally, in order to escape from the trap, some policy proposals of the authors will be asserted.

The Middle-Income Trap from the Viewpoint of Trade Structures: Are the Geese Trapped or Still Flying?

2015 ◽  
Vol 06 (03) ◽  
pp. 1550017 ◽  
Author(s):  
Satoru Kumagai
Keyword(s):  
International Trade ◽  
Empirical Analysis ◽  
Industrial Upgrading ◽  
Middle Income ◽  
Income Levels ◽  
Different Types ◽  
Middle Income Trap ◽  
Net Export ◽  
The Relationship

In this paper we try to explain the concept of middle-income trap from the viewpoint of international trade. We conduct an empirical analysis on the relationship between income levels and net export ratios for different types of goods for trapped and non-trapped countries separately. Our findings indicate that industrial upgrading appears to occur exactly as depicted by the flying-geese (FG) model for non-trapped countries. Trapped countries tend to depend on the export of primary commodities and industrialization appears to be driven by forward linkages to processed goods.

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

scholarly journals The Middle-Income Trap and the Coping Strategies From Network-Based Perspectives

Entropy ◽  
2018 ◽  
Vol 20 (10) ◽  
pp. 803
Author(s):  
Ming-Yang Zhou ◽  
Wen-Man Xiong ◽  
Xiao-Yu Li ◽  
Hao Liao
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Developing Country ◽  
Developed Countries ◽  
Trade Network ◽  
Middle Income ◽  
Research Fields ◽  
Novel Method ◽  
Middle Income Trap ◽  
International Trade Network

When a developing country reaches a relatively average income level, it often stops growing further and its income does not improve. This is known as the middle-income trap. How to overcome this trap is a longstanding problem for developing countries, and has been studied in various research fields. In this work, we use the Fitness-Complexity method (FCM) to analyze the common characteristics of the countries that successfully get through the middle-income trap, and show the origin of the middle-income trap based on the international trade network. In the analysis, a novel method is proposed to characterize the interdependency between products. The results show that some middle-complexity products depend much on each other, which indicates that developing countries should focus on them simultaneously, implying high difficulty to escape the middle-income trap. To tackle the middle-income trap, developing countries should learn experiences from developed countries that share similar development history. we then design an effective method to evaluate the similarity between countries and recommend developed countries to a certain developing country. The effectiveness of our method is validated in the international trade network.

The Nexus between Financial Development and Human Development: The Case of Developing Countries

2020 ◽  
Vol 8 (2) ◽  
pp. 68
Author(s):  
Bilgehan Tekin
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Human Development ◽  
Financial Development ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Causality Analysis ◽  
Development Index ◽  
Development Levels ◽  
The Relationship

The purpose of this study to examine the relationship between financial development and human development in the health and welfare dimensions of developing countries. This study aims to determine whether the financial developments of the countries have an effect on the basic human development of the individuals and whether human development indicators have an impact on financial development. In this study, the relationship between financial development and human development has been tried to be revealed by using data obtained from developing countries. Financial development levels of the countries were measured with the developed financial development index. The index is calculated by using M3 / GDP, private sector loans / GDP and loans to banks from private sector / GDP ratios. The human development index is calculated by considering various health indicators and GNP per capita. The data includes annual data for the period 1970-2016. Pedroni and Kao cointegration analysis and Dumitrescu & Hurlin panel causality analysis were performed in the study. According to the results of the study, the cointegration relationship was determined between the two variables. There is also a two-way causality between the variables.

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