How to escape the middle income trap: international evidence from a binary dependent variable model

Theoretical and Applied Economics

卷:XXII

Can Tansel TUĞCU¹ 

[1] Nevşehir Hacı Bektaş Veli University, Turkey;

关键词: The middle-income trap;    Logit;    Marginal effects;    Cross-country analysis;   

DOI  :  

来源: DOAJ

【 摘 要 】

The middle-income trap refers to an economic situation at which a country getsstuck when it achieves the middle-income status. According to Rigg et al. (2014), there are28 countries which by 1987 had attained middle-income status but in 2012 still remained inthis middle-income category. In this context, this study aims to find a way out from the trapby analyzing countries some of which are high-income status and the others are not. To thisend, the study employs a binary model with the cross-section data of 26 high and middleincomecountries and estimates the marginal effects that have a good potential to show theway out from the trap. Findings indicate that countries which spend more on secondaryeducation, health and R&D, which have more educated labor force, which experiencehigher level of labor force participation, which export high-tech items and which createhigher level of value added in the manufacturing industry are more likely to achieve thehigh-income status. On the other hand, countries which spend more on primary education,which import more, and which create higher level of value added in the agricultural sectorare less likely to get the high-income status.

【 授权许可】

Unknown