Theoretical and Applied Economics
No. 1 / 2015 (602), Spring
How to escape the middle income trap: international evidence from a binary dependent variable model
Nevşehir Hacı Bektaş Veli University, Turkey
Abstract. The middle-income trap refers to an economic situation at which a country gets stuck when it achieves the middle-income status. According to Rigg et al. (2014), there are 28 countries which by 1987 had attained middle-income status but in 2012 still remained in this middle-income category. In this context, this study aims to find a way out from the trap by analyzing countries some of which are high-income status and the others are not. To this end, the study employs a binary model with the cross-section data of 26 high and middleincome countries and estimates the marginal effects that have a good potential to show the way out from the trap. Findings indicate that countries which spend more on secondary education, health and R&D, which have more educated labor force, which experience higher level of labor force participation, which export high-tech items and which create higher level of value added in the manufacturing industry are more likely to achieve the high-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 sector are less likely to get the high-income status.
Keywords: The middle-income trap, Logit, Marginal effects, Cross-country analysis.
Contents
- The credit impact on the economic growth
Daniel ARMEANU
Carmen PASCAL
Dorina POANTA
Cristina Andreea DOIA
- Predicting balance of payments crises
for some emerging economies
Archana KULKARNI
Bandi KAMAIAH
- Creativity and innovation – Sources of competitive advantage in
the value chain of tourism enterprises
Nicolae TEODORESCU
Aurelia-Felicia STĂNCIOIU
Anamaria Sidonia RĂVAR
Andreea BOTOȘ
- How to escape the middle income trap:
international evidence
from a binary dependent variable model
Can Tansel TUĞCU
- Environmental Kuznets curve. Evidence from Romania
Dorin JULA
Corina-Ionela DUMITRESCU
Ioana-Ruxandra LIE
Răzvan-Mihai DOBRESCU
- Effects of economic crisis on the distribution
of earnings from Romania
Amalia CRISTESCU
Dorel AILENEI
- An approach of social policy in terms
of macro-stabilisation function
Anca-Maria GHERMAN
George-Marian ȘTEFAN
- Economy recovery risks which Romanian companies
has to cope with
Daniela Livia TRAȘCĂ
- The measurement of fiscal behavior in some European
countries: Panel data perspective
Süleyman BOLAT
Aviral Kumar TIWARI
- Romanian municipal bond market at Bucharest Stock
Exchange: further investigations
Cornelia POP
Maria-Andrada GEORGESCU
- Inequality and economic growth:
theoretical and operational approach
Ana ANDREI
Liliana CRĂCIUN
- Measuring financial development in India:
A PCA approach
Sanjaya Kumar LENKA
- The role of rating agencies
in international financial market
Emilian-Constantin MIRICESCU
- Socioeconomic development index ranking
calculations of cities with fuzzy clustering method:
case of Turkey
Necati Alp ERİLLİ
- Fiscal transparency in the European Union
Alexandra ADAM
- Accelerating the development of learning organizations: Shifting
paradigms from current practice to human performance
improvement
John B. LAZĂR
Daniela ROBU
- Transferring business intelligence
and big data analysis from corporations
to governments as a hybrid leading indicator
Dumitru-Alexandru BODISLAV
- The impact of cultural and educational accumulations
on entrepreneurial behaviour.
Main issues encountered in theoretical approaches
Anca-Teodora ŞERBAN-OPRESCU (OPRESCU)
Ştefania-Cristina CUREA (NEAGU)
- Models for evaluating financial crisis – what went wrong
for developed and emerging economies?
Smaranda CIMPOERU
- Impact of financial crisis on the decision making process for
insurance consumers
Laura Elly NAGHI
Mihaela COVRIG
Adrian FEDEROVICI
- Beyond the implementation of a dynamic stochastic general
equilibrium model
Oana Simona HUDEA (CARAMAN)