Growth Slowdown and the Middle Income Trap in Asia
Keywords:
Middle-income trap, Economic growth, AsiaAbstract
Many Asian developing countries are alleged to be stuck in a “middle-income trap.” A middle-income trap is associated with the slowing down of growth due to policy rather than the natural and inevitable consequence of catching-up with high-income countries. If growth slowdown is due to policy, does it mean ipso facto that a country is “trapped?” The answer is no, unless the policy maker has a vested interest in growth-inhibiting policies. Why should that be a particular problem for middle-income countries? The paper provides answer and some circumstantial evidence to support it.
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