A Discussion About the Possible Effect of Middle Income Trap on Large Scale Firms’ Selection of Competitive Strategy

Eryilmaz, Filiz; Eryılmaz, Mehmet Eymen

doi:10.1016/j.sbspro.2015.10.131

Cited by 5 publications

(2 citation statements)

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“…Economic growth is not a linear function as it gets exponentially harder for countries to keep growing (Ozturk, 2016). A country in its early development stage is primarily agrarian, which comprises of a lion’s share of its economic output and employment (Felipe, 2012; Eryılmaz and Eryılmaz, 2015). A notable theorization of transitional economic development was Rostow’s (1959) five stage economic growth: the traditional society, the preconditions for take-off, the take-off, the drive to maturity and the age of high mass consumption.…”

Section: Literature Reviewmentioning

confidence: 99%

An empirical approach to understanding the lower-middle and upper-middle income traps

Kabir

Ahmed

2019

IJDI

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Purpose The purpose of this paper is to investigate the factors that are significant in contributing to the per capita income growth of countries that are experiencing or have experienced the lower-middle and upper-middle income traps. Design/methodology/approach The study comprises 85 countries over the period 1960 to 2017 spanning across three income groups: lower-middle, upper-middle and high. A panel data structure was used to run a fixed effect and random effect estimation on three models of income groups. The Hausman specification test, which was used for further statistical fitness, confirmed the appropriateness of fixed effect over the random in explaining the estimation of factor variables. Findings The results show that unemployment is a pervasive problem that negatively affect countries at all income levels. Foreign direct investment and population of dependents are associated with economic progression of countries that have experienced or are experiencing the lower-middle income trap. Furthermore, rising income inequality and foreign aid assistance are detrimental to countries that have experienced or are experiencing the upper-middle income trap. Moreover, income inequality, disproportionate urban population and rising dependent population are damaging for high income countries that never experienced any of the middle-income traps. Conversely, openness to trade, inflation and exchange rate volatility had limited capacity in explaining growth dynamics. Research limitations/implications This study could not incorporate geopolitical, demographic, geographical and other such exogenous factors, which could have episodes of influences on the economic development of countries. These were outside the study's realm of quantitative analysis. Originality/value This paper contributes to existing literature by providing an empirical cross-sectional comparative analysis of countries belonging to different income groups. The prevailing literature lacks such a cross-tabulated presentation of factors affecting countries that avoided the middle income trap and those that could not.

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Section: Literature Reviewmentioning

confidence: 99%

An empirical approach to understanding the lower-middle and upper-middle income traps

Kabir

Ahmed

2019

IJDI

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“…1 This resulted in both stabilisation and a gradual stagnation of economic growth rates with a need for the economy to create new engines of growth. According to the World Bank Report (Eryılmaz & Eryılmaz, 2015), for a nation to exit this trap and continue growth, three transformations are essential. These are diversification to specialisation in production and employment; shift to innovation from investment; and equipping workers with skills for new technologies, products and processes.…”

Section: Introductionmentioning

confidence: 99%

‘Made in China 2025’: Poised for Success?

Agarwala¹,

Chaudhary

2021

India Quarterly: A Journal of International Affairs

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In the last 70 years, due to reforms and policies, China has moved from an agrarian economy to being a manufacturing superpower. However, this has been possible due to technology transfers into China with the core technologies remaining with the West in the name of competitiveness and national security. To achieve true technological independence and self-reliance, China proposed the ‘Made in China 2025’ policy in 2015 which has since been opposed vehemently by the West. This notwithstanding, China has continued its effort of self-reliance. Hence, it is essential to evaluate if these efforts are bearing the required results. Using qualitative research, the authors look at the factors leading China to adopt ‘Made in China 2025’ and the opposition faced by it through tariff and non-tariff measures. Various supporting policies of Made in China 2025 (MIC25) and the advancements made have been examined. The article thus aims to address the ethos of initiating MIC25, the difficulties China is facing in realising its dreams due to restrictions by the US and its allies and how China is making an all-out effort to make it a success. The primary question that the article aims to answer is whether the efforts of China towards MIC25 are poised for success and how it will affect the developed nations.

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Technology penetration and human development nexus in middle-income countries: the synergy effect of inclusive resources distribution

Adegboye

Ojeka

Tolase

et al. 2021

Information Technology for Development

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A Discussion About the Possible Effect of Middle Income Trap on Large Scale Firms’ Selection of Competitive Strategy

Cited by 5 publications

References 25 publications

An empirical approach to understanding the lower-middle and upper-middle income traps

An empirical approach to understanding the lower-middle and upper-middle income traps

‘Made in China 2025’: Poised for Success?

Technology penetration and human development nexus in middle-income countries: the synergy effect of inclusive resources distribution

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