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Middle-Income Growth Traps
TLDR
In this article, the authors studied the existence of middle-income growth traps in a two-period overlapping generations model of economic growth with two types of labor and endogenous occupational choices and distinguished between "basic" and "advanced" infrastructure, with the latter promoting design activities, and accounts for a knowledge network externality associated with product diversification.Abstract:
This paper studies the existence of middle-income growth traps in a two-period overlapping generations model of economic growth with two types of labor and endogenous occupational choices. It also distinguishes between "basic" and "advanced" infrastructure, with the latter promoting design activities, and accounts for a knowledge network externality associated with product diversification. Multiple steady-state equilibria may emerge, one of them taking the form of a low-growth trap characterized by low productivity growth and a misallocation of talent -- defined as a relatively low share of high-ability workers in design activities. Improved access to advanced infrastructure may help escape from that trap. The implications of other public policies, including the protection of property rights and labor market reforms, are also discussed.read more
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Growth Slowdowns and the Middle-Income Trap
TL;DR: In this paper, the authors examine the middle-income trap as a special case of growth slowdowns, which are identified as large sudden and sustained deviations from the growth path predicted by a basic conditional convergence framework.
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Trouble in the Making?: The Future of Manufacturing-Led Development
TL;DR: In the past, manufacturing-led development typically delivered both productivity gains and job creation for unskilled labor as mentioned in this paper, however, these trends raise fears that manufacturing will no longer offer an accessible pathway for low-income countries to develop and, even if feasible, will not provide the same dual benefits of productivity gains, job creation and low-skilled labor.
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The Middle-Income Trap: More Politics than Economics
TL;DR: In this article, the authors argue that countries in the middle-income trap face two major institutional and political challenges: the policies necessary to upgrade productivity, as in human capital and innovation, require enormous investment in institutional capacity; these institutional challenges come at a time when political capacity for building these institutions is weak, due primarily to the fragmentation of potential support coalitions.
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Middle-Income Traps: A Conceptual and Empirical Survey
TL;DR: In this paper, the authors examined historical transition phases in the inter-country distribution of income based on previous work in the literature, and concluded that transition matrix analysis provides little support for the idea of a middle-income trap.
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Avoiding middle-income growth traps
TL;DR: Agenor and Canuto as discussed by the authors provided an analytical characterization of "middle-income traps" as stable, low-growth economic equilibrium where talent is misallocated and innovation stagnates.
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Endogenous Technological Change
TL;DR: In this paper, the authors show that the stock of human capital determines the rate of growth, that too little human capital is devoted to research in equilibrium, that integration into world markets will increase growth rates, and that having a large population is not sufficient to generate growth.
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R&d-based models of economic growth
TL;DR: In this article, a modified version of the Romer model that is consistent with this evidence is proposed, but the extended model alters a key implication usually found in endogenous growth theory.
Book
Handbook of Economic Growth
TL;DR: The Handbook of Economic Growth as discussed by the authors summarizes recent advances in theoretical and empirical work while offering new perspectives on a range of growth mechanisms, from the roles played by institutions and organizations to the ways factors beyond capital accumulation and technological change can affect growth.
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Distance to Frontier, Selection, and Economic Growth
TL;DR: In this paper, the authors analyse an economy where managers engage both in the adoption of technologies from the world frontier and in innovation activities, and show that relatively backward economies may switch out of the investment-based strategy too soon, so certain economic institutions and policies, such as limits on product market competition or investment subsidies, which encourage the investmentbased strategy may be beneficial, however, fail to converge to the world technology frontier.
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Imported Intermediate Inputs and Domestic Product Growth: Evidence from India
TL;DR: In this paper, the authors investigate the relationship between declines in trade costs, imports of intermediate inputs, and domestic firm product scope, and find that lower input tariffs account on average for 31% of the new products introduced by domestic firms.