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Can China escape the middle-income trap?

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  • Yiping Huang

Abstract

Can China continue its relatively rapid economic growth and rise to the high-income status in the coming decade? In this article we address this question by examining three issues. One, is the current slowdown mainly a cyclical or a structural phenomenon? Two, can China successfully transform its growth model? And, three, what does China need to do to foster its capability of technological innovation and industrial upgrading? We conclude that, with necessary reforms, such as improvement in the education and research capability, liberalization of the financial system and introduction of a more transparent and accountable political system, China will most likely be able to escape the middle-income trap in the next 10 years.

Suggested Citation

  • Yiping Huang, 2016. "Can China escape the middle-income trap?," China Economic Journal, Taylor & Francis Journals, vol. 9(1), pages 17-33, January.
    • Handle: RePEc:taf:rcejxx:v:9:y:2016:i:1:p:17-33
    DOI: 10.1080/17538963.2015.1122882
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    Cited by:

    1. Rawan Elshaarawy & Riham A. Ezzat, 2023. "Global value chains, financial constraints, and innovation," Small Business Economics, Springer, vol. 61(1), pages 223-257, June.

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