IDEAS home Printed from https://ideas.repec.org/a/ntu/ntugeo/vol12-iss2-15-24.html
   My bibliography  Save this article

Two Manifestations Of The Middle-Income Trap In East-Central Europe

Author

Listed:
  • TAMÁS TIBOR CSONTOS

    (Institute of World Economics, Centre for Economic and Regional Studies)

Abstract

The paper attempts to reinterpret the concept of the middle-income trap and develops the theory of participation and self-effort. On this basis, the paper distinguishes two different types of middle-income traps. The exclusion trap, which is the result of a one-sided focus on the self-effort, and the vulnerability trap, which is the result of a one-sided focus on participation. The model argues that catching-up can be achieved when the participation and the self-effort are in harmony. The paper also uses this approach to analyse the middle-income trap in East-Central European countries, demonstrating the empirical validity of the theory. It associates socialist planned economies with the exclusion trap, while identifying the dependent market economy model that emerged after regime change with the vulnerability trap.

Suggested Citation

  • Tamás Tibor Csontos, 2024. "Two Manifestations Of The Middle-Income Trap In East-Central Europe," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 12(2), pages 15-24, December.
    • Handle: RePEc:ntu:ntugeo:vol12-iss2-15-24
    as

    Download full text from publisher

    File URL: http://www.globeco.ro/wp-content/uploads/vol/split/vol_12_no_2/geo_2024_vol12_no2_art_002.pdf
    File Function: First version, 2024
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Longfeng Ye & Peter E. Robertson, 2016. "On the Existence of a Middle-Income Trap," The Economic Record, The Economic Society of Australia, vol. 92(297), pages 173-189, June.
    2. Fernando Gabriel Im & David Rosenblatt, 2015. "Middle-Income Traps: A Conceptual and Empirical Survey," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 1-39.
    3. 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.
    4. Ricz, Judit & Sallai, Dorottya & Sass, Magdolna, 2023. "The role of the state in shaping the internationalization of firms in the twenty-first century," LSE Research Online Documents on Economics 121380, London School of Economics and Political Science, LSE Library.
    5. Homi Kharas & Indermit Gill, 2007. "An East Asian Renaissance : Ideas for Economic Growth," World Bank Publications - Books, The World Bank Group, number 6798, April.
    6. Bresser-Pereira, Luiz Carlos & Araújo, Eliane Cristina & Costa Peres, Samuel, 2020. "An alternative to the middle-income trap," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 294-312.
    7. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    8. Kornai, Janos, 2013. "Dynamism, Rivalry, and the Surplus Economy: Two Essays on the Nature of Capitalism," OUP Catalogue, Oxford University Press, number 9780199334766, Decembrie.
    9. Homi Kharas & Harinder Kohli, 2011. "What Is the Middle Income Trap, Why do Countries Fall into It, and How Can It Be Avoided?," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 3(3), pages 281-289, September.
    10. Pierre-Richard Agénor, 2017. "Caught In The Middle? The Economics Of Middle-Income Traps," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 771-791, July.
    11. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766, Decembrie.
    12. Aleksandra Kordalska & Magdalena Olczyk, 2023. "Upgrading low value-added activities in global value chains: a functional specialisation approach," Economic Systems Research, Taylor & Francis Journals, vol. 35(2), pages 265-291, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bianchi, Carlos & Isabella, Fernando & Martinis, Anaclara & Picasso, Santiago, 2024. "Varieties of middle-income trap: Heterogeneous trajectories and common determinants," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 320-336.
    2. Glawe, Linda & Wagner, Helmut, 2020. "China in the middle-income trap?," China Economic Review, Elsevier, vol. 60(C).
    3. Janusz Heller & Rafal Warzala, 2018. "Is Poland in a middle income trap? A theoretical and empirical analysis," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 17(4), pages 367-381, December.
    4. Razafimandimby Andrianjaka, Riana & Rougier, Eric, 2019. "“What difference does it make (to be in the Middle Income Trap)?”: An empirical exploration of the drivers of growth slowdowns," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 225-236.
    5. Riana Razafimandimby Andrianjaka & Eric Rougier, 2017. "What difference does it make? Revue de littérature et analyse empirique des déterminants de la Trappe à Revenu Intermédiaire," Cahiers du GREThA (2007-2019) 2017-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    7. Prajapati, Vishwajeet Singh & Priya, Ashutosh & Pradhan, Vikas, 2023. "The middle-income trap – a problem of definition and empirical research," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 16(3), September.
    8. Prajapati Vishwajeet Singh & Priya Ashutosh & Pradhan Vikas, 2023. "The middle-income trap – a problem of definition and empirical research," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 16(3), pages 459-472, September.
    9. Jungsuk Kim & Jungsoo Park, 2018. "The Role of Total Factor Productivity Growth in Middle-Income Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(6), pages 1264-1284, May.
    10. 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.
    11. Mehmet Hanefi Topal, 2020. "The Middle Income Trap: Theory and Empirical Evidence," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 34(1), pages 51-75.
    12. Cyn‐Young Park & Rogelio V. Mercado, 2020. "Economic Convergence, Capital Accumulation, and Income Traps: Empirical Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(1), pages 26-58, March.
    13. Yaya, OlaOluwa S & Vo, Xuan Vinh & Adekoya, Oluwasegun B., 2021. "Convergence among themselves and Middle-income trap of South-East Asian Nations: Findings from a New approach," MPRA Paper 109372, University Library of Munich, Germany.
    14. Akbas, Yusuf Ekrem & Sancar, Canan, 2021. "The impact of export dynamics on trade balance in emerging and developed countries: An evaluation with middle income trap perspective," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 357-375.
    15. Carlos Bianchi & Fernando Isabella & Santiago Picasso, 2023. "Growth slowdowns at middle income levels: Identifying mechanisms of external constraints," Metroeconomica, Wiley Blackwell, vol. 74(2), pages 288-305, May.
    16. Csontos, Tamás Tibor, 2023. "A magyar felzárkózási modell ágazati alapú, regionális és időbeli összehasonlító elemzése [Sectoral comparative analysis of the Hungarian catching-up model]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 167-191.
    17. Glawe, Linda & Wagner, Helmut, 2017. "The Deep Determinants at More Subtle Stages of Development: The Example of the Middle-Income Trap Phenomenon," CEAMeS Discussion Paper Series 11/2017, University of Hagen, Center for East Asia Macro-economic Studies (CEAMeS), revised 2017.
    18. Gill,Indermit S. & Kharas,Homi, 2015. "The middle-income trap turns ten," Policy Research Working Paper Series 7403, The World Bank.
    19. Allaoui, Elhassen & Tidjani, Chemseddine & Lacheheb, Miloud, 2015. "“Middle Income Trap”; the position of Algerian economy: a comparative analysis overview," MPRA Paper 91745, University Library of Munich, Germany, revised 18 Mar 2019.
    20. Charles Gore, 2017. "Late industrialisation, urbanisation and the middle-income trap: an analytical approach and the case of Vietnam," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(1), pages 35-57.

    More about this item

    Keywords

    middle-income trap; East-Central Europe; dependent market economy;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntu:ntugeo:vol12-iss2-15-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefan Ciucu The email address of this maintainer does not seem to be valid anymore. Please ask Stefan Ciucu to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/feuntro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.