Year: 2017
Type: report
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 nonparametric classification technique, we search for variables that separate fast-and slowgrowing 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.
DOI: 10.3386/w23126
Authors: Xuehui Han, Shang-Jin Wei
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4232147182