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.
Contents
The credit impact on the economic growth
Predicting balance of payments crises for some emerging economies
Creativity and innovation – Sources of competitive advantage in the value chain of tourism enterprises
How to escape the middle income trap: international evidence from a binary dependent variable model
Land value dynamics with endogenous human and physical capital accumulation
Environmental Kuznets curve. Evidence from Romania
Effects of economic crisis on the distribution of earnings from Romania
An approach of social policy in terms of macro-stabilisation function
Economy recovery risks which Romanian companies has to cope with
The measurement of fiscal behavior in some European countries: Panel data perspective
Romanian municipal bond market at Bucharest Stock Exchange: further investigations
Inequality and economic growth: theoretical and operational approach
Measuring financial development in India: A PCA approach
Welfare costs due to economic fluctuations according to different model setups
The role of rating agencies in international financial market
Socioeconomic development index ranking calculations of cities with fuzzy clustering method: case of Turkey
Fiscal transparency in the European Union
Epistemic transfers in economics from social sciences
Accelerating the development of learning organizations: Shifting paradigms from current practice to human performance improvement
Transferring business intelligence and big data analysis from corporations to governments as a hybrid leading indicator
The impact of cultural and educational accumulations on entrepreneurial behaviour. Main issues encountered in theoretical approaches
Models for evaluating financial crisis – what went wrong for developed and emerging economies?
Impact of financial crisis on the decision making process for insurance consumers
Beyond the implementation of a dynamic stochastic general equilibrium model
How the legislation influenced the M&A transactions in Romania