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How Not to Get Stuck in the Middle. Lessons for the Commonwealth of Independent States from Central and Eastern Europe

Author

Listed:
  • Kamil Pruchnik
  • Jakub Zowczak

Abstract

The aim of this paper is to analyze how different models of transformation in Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) increased or decreased the risk of being stuck in the middle-income trap (MIT). The key finding is that the CEE and CIS countries are, from a definition point of view, not materially at risk of the MIT as out of nine selected MIT definitions, none of the CEE or CIS countries were “stuck” more than three times. At the same time, the CEE countries are more at risk of falling into the MIT than the CIS countries; however this is because the CIS is a poorer region and is not near the lower MIT thresholds. The CEE countries had a better start at the beginning of the transformation and on average implemented a better set of transformation models; however, some CEE countries are now struggling to permanently join the advanced countries and CIS countries are, on average, far behind that.

Suggested Citation

  • Kamil Pruchnik & Jakub Zowczak, "undated". "How Not to Get Stuck in the Middle. Lessons for the Commonwealth of Independent States from Central and Eastern Europe," CASE Working Papers 0006, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:worpap:0006
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    File URL: https://case-research.eu/files/?id_plik=5223
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    More about this item

    Keywords

    middle income trap; convergence; transition; transformation;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary

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