The middle-income trap

Losoncz Miklós and Rurong Chen (2025) The middle-income trap. In: Szemelvények a BGE kutatásaiból 2024. Budapesti Gazdaságtudományi Egyetem, Budapest, pp. 143-151. ISBN 978-615-6886-21-7

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Abstract

The middle-income trap is a developmental phenomenon in which nations that reach middleincome status find it difficult to reach high-income levels. This literature review examines definitions and interpretations of this phenomenon. The review categorises the key factors contributing to the trap, including demographic shifts, human capital and innovation, growth trajectory, economic structure and productivity, and the institutional factor. It highlights the importance of technological upgrading, education reforms, and structural transformation in overcoming these barriers. Furthermore, the assessment emphasises the importance of analysing and incorporating the most recent global economic trends, such as those highlighted in recent World Bank publications, to understand shifting dynamics better. Low value-added production, low productivity, a lack of innovation, and a lack of education result from issues like investment dependency, depopulation, and an outdated economic structure; non-economic factors like the political and social systems also affect economic development.

Tudományterület / tudományág

társadalomtudományok > közgazdaságtudományok

Institution

Budapesti Gazdasági Egyetem

Item Type:	Book Section
Creators:	Creators ORCID MTMT szerző azonosító Losoncz Miklós Rurong Chen
Uncontrolled Keywords:	Middle-income trap, labour productivity, technological innovation, political economy, economic structure.
Depositing User:	Kinga Eszenyi-Bakos
DOI azonosító:	https://doi.org/10.29180/978-615-6886-21-7_15
Date Deposited:	2025. Nov. 25. 13:42
Last Modified:	2025. Nov. 25. 13:42
URI:	https://publikaciotar.uni-bge.hu/id/eprint/2578

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