Factors to Escape the Middle-Income Trap?

Dalgic B., VAROL İYİDOĞAN P., Balikciolu E.

MALIYE DERGISI, no.167, pp.116-125, 2014 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: Issue: 167
  • Publication Date: 2014
  • Journal Name: MALIYE DERGISI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.116-125
  • Hacettepe University Affiliated: Yes

Abstract

We aim to examine the effects of various macroeconomic, technological and institutional variables on the probability of high growth performance for middle-income countries exceeding their average gdp per capita growth rate, in other words the probability of transition to a higher income group. Our analyses cover 56 middle-income countries including Turkey for the period of 1990-2013. The results of the study suggest the importance of improvements in human capital, technology, institutional quality and sound macroeconomic indicators to avoid the middle income trap.