Abstract
The backward economies can’t enter into the high-income group after stepping on the middle-income stage successfully. Based on multidimensional perspective of economics, this paper will analyze the reasons of "middle-income trap". As the adverse condition of international environment and domestic weakness, the development process of backward economies when they enter into the "middle income trap" is generally affected by the global economic crisis, while it is difficult to resist the global economic crisis for the middle income stage because its vulnerability. Turning to another views, the lower domestic savings rate, the shortage of high-end production factors, the low degree of market standard, the low-end embedded international production system will hinder the middle-income economies to enter into high-income group. The analysis of this paper in details will provide reference for China and provide theoretical support and policy guidance for its rapid entry into high - income economies.
Highlights
According to the World Bank's definition to middle-income trap, economies whose per capita GNI is ranging from 2006 to 12275 are collectively referred to middle-income economies
Even if Poland broke through the middle-income stage in some years, it did not show the same vitality as Japan and South Korea but was still wandering in the upper edge of middle-income stage defined by the World Bank
The parts are arranged as follows: Section 2 is the literature review which systematically expounded the explanation of early scholars about the middle income trap; Section 3 analyzes the difference between the four small economies of East Asia and economies of Southeast Asia and Latin America from the perspective of international environment; Section 4 analyzes the difference between the two from the perspective of the domestic economic growth model; Conclusion is the last part
Summary
According to the World Bank's definition to middle-income trap, economies whose per capita GNI is ranging from 2006 to 12275 are collectively referred to middle-income economies. On the process of world development, backward countries will face the reality that they will experience from middle-income stage to high-income economy in the process of economic catching-up inevitably. Japan spent more than ten years to enter into high-income group from the middle income stage successfully. Lin Yifu takes the view that China can quickly get rid of the middle income stage and enter the group of high-income economies before 2025. The parts are arranged as follows: Section 2 is the literature review which systematically expounded the explanation of early scholars about the middle income trap; Section 3 analyzes the difference between the four small economies of East Asia and economies of Southeast Asia and Latin America from the perspective of international environment; Section 4 analyzes the difference between the two from the perspective of the domestic economic growth model; Conclusion is the last part
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