IDEAS home Printed from https://ideas.repec.org/p/ris/adbewp/0517.html
   My bibliography  Save this paper

The Landscape of Economic Growth: Do Middle-Income Countries Differ?

Author

Listed:
  • Eichengreen, Barry

    (University of California Berkeley)

  • Park, Donghyun

    (Asian Development Bank)

  • Shin, Kwanho

    (Korea University)

Abstract

We review the growth experience of middle-income countries. Economic factors associated with growth appear to differ between middle income and other countries. The efficiency of the financial system is importantly related to the growth rate in low- and middle-income countries, but appears to matter less as one moves up the income scale. Demographic variables also matter importantly in low-income countries. In middle-income countries, in contrast, measures of the financial system no longer appear to matter as importantly, as if inefficiencies in banking and financial systems are no longer as binding a constraint as at earlier stages of financial development; nor are demographic variables as important as before. At this point, other variables gain a growing role: these include whether the country experiences a banking or currency crisis, the extent of nonforeign direct investment capital inflows, and government debt as a share of gross domestic product.

Suggested Citation

  • Eichengreen, Barry & Park, Donghyun & Shin, Kwanho, 2017. "The Landscape of Economic Growth: Do Middle-Income Countries Differ?," ADB Economics Working Paper Series 517, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0517
    as

    Download full text from publisher

    File URL: https://www.adb.org/publications/landscape-economic-growth-middle-income-countries
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Barry Eichengreen & Donghyun Park & Kwanho Shin, 2012. "When Fast-Growing Economies Slow Down: International Evidence and Implications for China," Asian Economic Papers, MIT Press, vol. 11(1), pages 42-87, Winter/Sp.
    2. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
    3. Han , Xuehui & Wei, Shang-Jin, 2015. "Re-examining the Middle-Income Trap Hypothesis: What to Reject and What to Revive?," ADB Economics Working Paper Series 436, Asian Development Bank.
    4. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    5. repec:rnp:ecopol:09111 is not listed on IDEAS
    6. Lant Pritchett & Lawrence H. Summers, 2013. "Asia-phoria meet regression to the mean," Proceedings, Federal Reserve Bank of San Francisco, issue Nov, pages 1-35.
    7. Aaron Tornell & Frank Westermann (ed.), 2005. "Boom-Bust Cycles and Financial Liberalization," MIT Press Books, The MIT Press, edition 1, volume 1, number 9780262201599, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sultan Hafeez Rahman & Muhammad Shahadat Hossain Siddiquee, 2024. "Growth effects of budgetary fiscal variables in a panel of middle-income countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(1), pages 145-168, February.
    2. Laura Heras Recuero & Roberto Pascual González, 2019. "Economic growth, institutional quality and financial development in middle-income countries," Working Papers 1937, Banco de España.
    3. Oleg Bazaluk & Sheikh Abdul Kader & Nurul Mohammad Zayed & Rupok Chowdhury & Md. Zahirul Islam & Vitalii S. Nitsenko & Hanna Bratus, 2025. "Determinant on Economic Growth in Developing Country: A Special Case Regarding Turkey and Bangladesh," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 135-159, March.

    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. Otsuka, Keijiro & Higuchi, Yuki & Sonobe, Tetsushi, 2017. "Middle-income traps in East Asia: An inquiry into causes for slowdown in income growth," China Economic Review, Elsevier, vol. 46(S), pages 3-16.
    2. Duttagupta, Rupa & Narita, Futoshi, 2017. "Emerging and developing economies: Entering a rough patch or protracted low gear?," Journal of Policy Modeling, Elsevier, vol. 39(4), pages 680-698.
    3. Takatoshi Ito, 2017. "Growth Convergence and the Middle-Income Trap," Asian Development Review, MIT Press, vol. 34(1), pages 1-27, March.
    4. Dieppe, Alistair & Gilhooly, Robert & Han, Jenny & Korhonen, Iikka & Lodge, David, 2018. "The transition of China to sustainable growth – implications for the global economy and the euro area," Occasional Paper Series 206, European Central Bank.
    5. Guanghua Wan & Peter J. Morgan & Justin Yifu Lin & Guanghua Wan & Peter J. Morgan, 2016. "Factors Affecting the Outlook for Medium-term to Long-term Growth in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(5), pages 20-41, September.
    6. Jong-Wha Lee, 2017. "China's economic growth and convergence," The World Economy, Wiley Blackwell, vol. 40(11), pages 2455-2474, November.
    7. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.
    8. Patel, Dev & Sandefur, Justin & Subramanian, Arvind, 2021. "The new era of unconditional convergence," Journal of Development Economics, Elsevier, vol. 152(C).
    9. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2022. "Trajectories to high income: Comparing the growth dynamics in China, South Korea, and Japan with cointegrated VAR models," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 492-511.
    10. Ulrike Malmendier & Alexandra Steiny Wellsjo, 2024. "Rent or Buy? Inflation Experiences and Homeownership within and across Countries," Journal of Finance, American Finance Association, vol. 79(3), pages 1977-2023, June.
    11. Davide Fiaschi & Andrea Mario Lavezzi & Angela Parenti, 2020. "Deep and Proximate Determinants of the World Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(3), pages 677-710, September.
    12. Antonio Afonso & Jose Alves, 2015. "The Role of Government Debt in Economic Growth," Hacienda Pública Española / Review of Public Economics, IEF, vol. 215(4), pages 9-26, December.
    13. Cesa-Bianchi, Ambrogio & Eguren Martin, Fernando & Thwaites, Gregory, 2019. "Foreign booms, domestic busts: The global dimension of banking crises," Journal of Financial Intermediation, Elsevier, vol. 37(C), pages 58-74.
    14. Saúl N. Keifman & Diego Herrero, 2020. "Convergencia económica e industrial entre países. ¿Qué dice la evidencia?," Asociación Argentina de Economía Política: Working Papers 4361, Asociación Argentina de Economía Política.
    15. Horn, Sebastian & Reinhart, Carmen M. & Trebesch, Christoph, 2021. "China's overseas lending," Journal of International Economics, Elsevier, vol. 133(C).
    16. Rudiger Ahrend & Antoine Goujard, 2012. "International Capital Mobility and Financial Fragility - Part 3. How Do Structural Policies Affect Financial Crisis Risk?: Evidence from Past Crises Across OECD and Emerging Economies," OECD Economics Department Working Papers 966, OECD Publishing.
    17. Gauvin, Ludovic & Rebillard, Cyril, 2013. "Towards Recoupling? Assessing the Impact of a Chinese Hard Landing on Commodity Exporters: Results from Conditional Forecast in a GVAR Model," MPRA Paper 65457, University Library of Munich, Germany.
    18. Wee Chian Koh & M. Ayhan Kose & Peter S. Nagle & Franziska L. Ohnsorge & Naotaka Sugawara, 2020. "Debt and Financial Crises," Koç University-TUSIAD Economic Research Forum Working Papers 2001, Koc University-TUSIAD Economic Research Forum.
    19. Kang, Byeongwoo & Nabeshima, Kaoru & Cheng, Fang-Ting, 2015. "Avoiding the middle income trap : indigenous innovative effort vs foreign innovative effort," IDE Discussion Papers 509, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    20. Nam Kyu Kim, 2018. "Transparency and currency crises," Economics and Politics, Wiley Blackwell, vol. 30(3), pages 394-422, November.

    More about this item

    Keywords

    crisis; growth; middle income; total factor productivity;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ris:adbewp:0517. 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: Orlee Velarde (email available below). General contact details of provider: https://edirc.repec.org/data/eradbph.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.