Difference between revisions of "Middle-income countries"
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== Middle-income trap == | == Middle-income trap == | ||
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| − | The Asia Society describes the middle-income trap thusly: "The “middle-income trap” is a theory of economic development in which wages in a country rise to the point that growth potential in export-driven low-skill manufacturing is exhausted before it attains the [[Innovation|innovative]] capability needed to boost productivity and compete with developed countries in higher value-chain industries. Thus, there are few avenues for further growth — and wages stagnate."<ref>[https://asiasociety.org/new-york/china-may-be-running-out-time-escape-middle-income-trap China May Be Running Out of Time To Escape the Middle-Income Trap], Asia Society, 2017</ref> | + | ''See also:'' [[Middle-income trap]] and [[Innovation]] |
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| + | The middle-income trap is a theory of economic development which deals with the issue of a middle-income country being unable to transform itself into a high-income economy. | ||
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| + | The Asia Society describes the middle-income trap thusly: "The “middle-income trap” is a theory of economic development in which wages in a country rise to the point that growth potential in export-driven low-skill manufacturing is exhausted before it attains the [[Innovation|innovative]] capability needed to boost [[productivity]] and compete with developed countries in higher value-chain industries. Thus, there are few avenues for further growth — and wages stagnate."<ref>[https://asiasociety.org/new-york/china-may-be-running-out-time-escape-middle-income-trap China May Be Running Out of Time To Escape the Middle-Income Trap], Asia Society, 2017</ref> | ||
== References == | == References == | ||
Revision as of 08:29, April 13, 2024
According to Investopedia, middle-income countries are defined as: "According to the World Bank, middle-income countries (MICs) are defined as economies with a gross national income (GNI) per capita between $1,136 and $13,845 as of 2024. MICs consist of lower-middle-income countries and upper-middle-income countries, both of which are part of the income categories that the World Bank uses to classify economies for operational and analytical purposes."[1]
Asian Development Bank: The middle-income countries transition to high-income counties around the globe: Characteristics of graduation and slowdown
The abstract for the Asian Development Bank 2015 paper entitled The Middle-Income Transition around the Globe: Characteristics of Graduation and Slowdown indicates:
| “ | The paper investigates the situation of middle-income economies around the world. Since 1965, only 18 economies with a population of more than 3 million and not dependent on oil exports have made the transition to being high income. Many more have not been able to move beyond the middle-income stage. We conduct statistical tests of differences between two groups of economies across a range of growth and development variables. The results suggest that middle-income economies are particularly weak in the following areas: governance, infrastructure, savings and investment, inequality, and quality—but not quantity—of education. The findings are used to suggest whether the People’s Republic of China is successfully progressing through the middle-income stage or whether it may get caught in a middle-income trap.[2] | ” |
Innovation and countries going from middle-income countries to high-income countries
See also: Innovation
Below are articles on innovation and countries going from middle-income countries to high-income countries:
- Innovation key to avoiding middle-income trap, Daily Star, 2024
- Escaping the Middle-Income Trap: Innovate or Perish, Asian Development Bank, 2017
Middle-income trap
See also: Middle-income trap and Innovation
The middle-income trap is a theory of economic development which deals with the issue of a middle-income country being unable to transform itself into a high-income economy.
The Asia Society describes the middle-income trap thusly: "The “middle-income trap” is a theory of economic development in which wages in a country rise to the point that growth potential in export-driven low-skill manufacturing is exhausted before it attains the innovative capability needed to boost productivity and compete with developed countries in higher value-chain industries. Thus, there are few avenues for further growth — and wages stagnate."[3]
References
- ↑ Middle-Income Countries (MICs): Characteristics and Significance, Investopedia
- ↑ The Middle-Income Transition around the Globe: Characteristics of Graduation and Slowdown by Paul Vandenberg, Lilibeth Poot, and Jeffrey Miyamoto. Asian Development Bank. ADBI Working Paper Series. No. 519. March 2015
- ↑ China May Be Running Out of Time To Escape the Middle-Income Trap, Asia Society, 2017