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Structural Change and Mid-Income Trap – Under which conditions can China succeed in moving towards higher income status?

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  • Helmut Wagner

Abstract

After two decades of very high economic growth rates, China has now reached the so-called mid-income range or ‘trap’, i.e. a development level where it has to expect slower economic growth rates (a ‘New Normal’) for the future. Associated with that is a structural change towards tertiarization which requires some fundamental rebalancing of China’s economy. Overcoming this mid-income trap and further catching up to the most advanced countries in the world is a very demanding task. In order to succeed China has to efficiently manage the mentioned rebalancing (structural change) process towards tertiarization and to undertake many fundamental structural reforms.

Suggested Citation

  • Helmut Wagner, 2015. "Structural Change and Mid-Income Trap – Under which conditions can China succeed in moving towards higher income status?," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(2), pages 165-188, December.
  • Handle: RePEc:liu:liucej:v:12:y:2015:i:2:p:165-188
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Wagner, Prof. Dr. Helmut, 2016. "The Building Up of New Imbalances in China: The Dilemma with ‘Rebalancing’," MPRA Paper 71494, University Library of Munich, Germany.
    2. Linda Glawe & Helmut Wagner, 2016. "The Middle-Income Trap: Definitions, Theories and Countries Concerned—A Literature Survey," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(4), pages 507-538, December.
    3. repec:kap:iecepo:v:14:y:2017:i:4:d:10.1007_s10368-016-0360-4 is not listed on IDEAS
    4. Glawe, Linda & Wagner, Helmut, 2016. "China in the Middle-Income Trap?," MPRA Paper 73336, University Library of Munich, Germany.
    5. repec:taf:jocebs:v:15:y:2017:i:3:p:269-287 is not listed on IDEAS
    6. Gandenberger, Carsten, 2018. "China's trajectory from production to innovation: Insights from the photovoltaics sector," Working Papers "Sustainability and Innovation" S03/2018, Fraunhofer Institute for Systems and Innovation Research (ISI).

    More about this item

    Keywords

    Middle-income trap; economic development; China; structural change; tertiarization; rebalancing;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • P5 - Economic Systems - - Comparative Economic Systems

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