The middle income trap: an empirical evidence on the Turkish economy

2018 ◽  
Vol 4 (2) ◽  
pp. 172
Author(s):  
Sevilay Konya ◽  
Zeynep Karaçor ◽  
Pınar Yardımcı
Keyword(s):  
Empirical Evidence ◽  
Middle Income ◽  
Turkish Economy ◽  
Middle Income Trap

scholarly journals The Middle Income Trap: Theory and Empirical Evidence

2020 ◽  
Vol 34 (1) ◽  
pp. 51-75
Author(s):  
Mehmet Hanefi Topal
Keyword(s):  
Empirical Evidence ◽  
Middle Income ◽  
Middle Income Trap

scholarly journals Middle Income Trap and Balance of Payments Constraint in the Turkish Economy

2015 ◽  
Author(s):  
Zekayi Kaya ◽  
Erkan Tokucu ◽  
Murat Aykırı ◽  
Cahit Durmuş
Keyword(s):  
Growth Rates ◽  
High Income ◽  
Balance Of Payments ◽  
The Other ◽  
Middle Income ◽  
Global Competitiveness ◽  
Turkish Economy ◽  
Middle Income Trap ◽  
The Relationship ◽  
Policy Proposals

Since the 1980’s, the growth rates have been continuously fluctuating because of internal and external economic and politic developments. These fluctuating - low growth rates led to a discussion on the middle income trap which is an outcome of low growth rates in Turkey. According to the some indicators, there is a middle income trap in the Turkish economy and the competitiveness of the economy has been decreasing in the international area because of the trap. It is seen that especially technology and innovations are the prominents factors that the governments have to take into account. This study is on the middle income trap in Turkey. In this context, firstly, the definitions of income traps, income grups, and the middle income trap will be given. Second, the causes of the middle income trap and the exit strategies from the trap will be expressed. Third, some indicators of the economy will be examined and compared with the high middle income and the high income countries. Fourth, the rank of the Turkish economy in the global competitiveness indeks will be shown and compared with the other countries. Fifth, the relationship between the middle income trap and the balance of payments will be investigated in context of the Thirlwall Rule. Finally, in order to escape from the trap, some policy proposals of the authors will be asserted.

scholarly journals A Discussion on Whether Turkish Economy is in Middle Income Trap or Not: A Perspective on Framework of the Exchange Rates Appreciation

2015 ◽  
Author(s):  
Murat Nişancı ◽  
Mine Gerni ◽  
Adem Türkmen ◽  
Ömer Selçuk Emsen
Keyword(s):  
Exchange Rate ◽  
Income Group ◽  
Middle Income ◽  
Income Per Capita ◽  
Middle Income Countries ◽  
Turkish Economy ◽  
The World ◽  
Middle Income Group ◽  
Per Capita ◽  
Middle Income Trap

Since 2007 long staying in the middle income group or especially unable to state a higher category, has begun to be considered as middle-income trap (MIT). According to World Bank (WB) classification, in 1955, Turkey reached to lower-middle income countries category from low-income category and staying there about 50 years. In 2004 Turkey has been reached constantly to upper-middle income countries category. However, last three years’ low growth figures and reaching 20% of the US income per capita have created many discussions whether Turkey entered in MIT. Besides, in parallel the integration of Turkish Economy to the world economy and to be exposed financial flows because of the world expansionary policies may result to have excessive appreciation of the national currency and to seem overvalued than real level of GDP in dollars. In emerging artificial bloating in income per capita is a result of undervaluation on the exchange rate. Therefore, in this study; the correct exchange rate is calculated with using base year determined depending on current account deficit’s minimum valued year or years which is assumed correct value of the exchange rate. By using calculated exchange rate, examined new GDP per capita series shows that Turkish economy could not reach the threshold 10000-12000 dollars despite being included in upper-middle income group in the WB classification. Furthermore, according to other classifications which are investigating MIT, it is also reached that Turkey has been placed in MIT long time period due to exchange rate pressures in terms of Turkey reached upper middle income position.

On the Path to High-Income Status or to Middle-Income Trap: The Turkish Economy in Search of Its Future

2018 ◽  
pp. 1-11
Author(s):  
Ahmet Faruk Aysan ◽  
Mehmet Babacan ◽  
Nurullah Gur ◽  
Hatice Karahan
Keyword(s):  
High Income ◽  
Middle Income ◽  
Income Status ◽  
Turkish Economy ◽  
Middle Income Trap

Developing an economy based on knowledge and innovation in the context of the middle income trap

2015 ◽  
Vol 60 (10) ◽  
pp. 56-74
Author(s):  
Paweł Wieczorek
Keyword(s):  
Economic Growth ◽  
New Technologies ◽  
Current Model ◽  
Growth Theory ◽  
Labor Costs ◽  
Average Income ◽  
Middle Income ◽  
Endogenous Growth Theory ◽  
Middle Income Trap

The article is a contribution to the discussion on the necessity to change the current model of economic growth of Poland for model of economy based on knowledge and innovation. In this way, our country will be able to overcome the threats that might push the economy into the trap of the average income, expressed in long-term slowdown in GDP growth. The endogenous growth theory, formed after 1989 and characterized by duplication of Western technology, enabled relatively rapid growth by over 20 years. Currently, Poland to ensure an economic growth is facing the need for innovative technologies and innovation. Risks associated with middle income trap are very real because of the disappearance of comparative advantage, which results from relatively low labor costs. The creation in Poland conditions to accelerate economic growth requires action to increase the propensity of entrepreneurs to reach for new technologies and innovation and attractive market offer from the national centers for research and development.

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