Re-examining the middle-income trap hypothesis (MITH): What to reject and what to revive?

B-Tier
Journal: Journal of International Money and Finance
Year: 2017
Volume: 73
Issue: PA
Pages: 41-61

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Do middle-income countries face difficult challenges producing consistent growth? Using transition matrix analysis, we can easily reject any unconditional notion of a “middle-income trap” in the data. However, countries have different fundamentals and policies. Using a non-parametric classification technique, we search for variables that separate fast- and slow-growing countries. For middle-income countries, a relatively large working age population, sex ratio imbalance, macroeconomic stability, and financial development appear to be the key discriminatory variables. We do the same exercise for low-income countries. This framework yields conditions under which countries in the low- and middle-income ranges move forward or backward, or are trapped.

Technical Details

RePEc Handle
repec:eee:jimfin:v:73:y:2017:i:pa:p:41-61
Journal Field
International
Author Count
2
Added to Database
2026-01-25