Difference between revisions of "Middle-income countries"
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''See also:'' [[Middle-income trap]] and [[Innovation]] | ''See also:'' [[Middle-income trap]] and [[Innovation]] | ||
| − | The middle-income trap refers to an economic situation where a middle-income country is failing to transform itself to a high-income economy due to its rising costs and declining competitiveness (Historically few countries successfully manage the transition from low to middle to high income).<ref>[https://elibrary.worldbank.org/doi/10.1596/9780821387856_CH04#:~:text=The%20middle%2Dincome%20trap%20refers,to%20middle%20to%20high%20income. Middle-Income Trap]</ref><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><ref>[Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 1)], Asia Development Bank, 2012</ref><ref>[Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 2)], Asia Development Bank, 2012</ref> | + | The middle-income trap refers to an economic situation where a middle-income country is failing to transform itself to a high-income economy due to its rising costs and declining competitiveness (Historically few countries successfully manage the transition from low to middle to high income).<ref>[https://elibrary.worldbank.org/doi/10.1596/9780821387856_CH04#:~:text=The%20middle%2Dincome%20trap%20refers,to%20middle%20to%20high%20income. Middle-Income Trap]</ref><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><ref>[https://www.adb.org/publications/tracking-middle-income-trap-what-it-who-it-and-why-part-1 Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 1)], Asia Development Bank, 2012</ref><ref>[https://www.adb.org/publications/tracking-middle-income-trap-what-it-who-it-and-why-part-2 Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 2)], Asia Development Bank, 2012</ref> |
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> | 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> | ||
Revision as of 09:04, 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 refers to an economic situation where a middle-income country is failing to transform itself to a high-income economy due to its rising costs and declining competitiveness (Historically few countries successfully manage the transition from low to middle to high income).[3][4][5][6]
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."[7]
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
- ↑ Middle-Income Trap
- ↑ China May Be Running Out of Time To Escape the Middle-Income Trap, Asia Society, 2017
- ↑ Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 1), Asia Development Bank, 2012
- ↑ Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 2), Asia Development Bank, 2012
- ↑ China May Be Running Out of Time To Escape the Middle-Income Trap, Asia Society, 2017