The Middle-Income Trap: Evidences from Fragile FiveEconomies

OpenAlex İngilizce

In general, the term growth is associated with high income, whereas the term development is associated with low and middle income countries. However, the concept of middle income trap causes new discussions in the growth and development literature. Theoretical and empirical studies in economic theory show that the low income countries have remained in a specific income range for many years. This study was carried out to reveal whether the economies of Brasil, India, Indonesia, South Africa and Turkey, which were called the fragile five in the years between 1968-2017, had fallen into the middle income trap or not with the help of unit root test. Results of the unit root test show that the fragile economies had fallen into the middle income trap in that period.