A Study on the Relationship between Developing Countries and the Middle-Income Trap: A Nar-rative in the Zambian Perspective

Abstract

While the Middle-Income Trap (MIT) has gained popularity in Europe, Asia and America in the past 15 years, little data exists about its impact on Africa. This is because, until recently, Africa had recorded minimal economic growth. However, since the year 2000, several African countries have recorded rapid economic growth to attain middle-income status, but very few have transitioned to high-income levels. This study aimed to establish Zambia's standing regarding the MIT. A unit root model was used to test for income convergence between Zambia and the United States of America (US). In line with the study model, income convergence is equivalent to the absence of unit root in the natural log difference in per capita income between the US and Zambia. The Augmented Dickey-Fuller, Phillips-Perron test which accounts for serial correlation and GLS detrended augmented Dickey-Fuller test were used to test for the unit root. All tests identified unit root indicating the lack of GDP per capita convergence between Zambia and the US. These results indicate Zambia is at a high risk of falling into MIT. To break from the MIT, Zambia should diversify its economy and shift from input led growth to growth based on economic efficiency. The lack of sustained economic growth in Zambia is due to 1) the inability to identify new growth drivers at the middle-income stage, 2) failure to institute the required political and institutional reforms to sustain growth at MIC level.

Spatial–Temporal Evolution, Impact Mechanisms, and Reclamation Potential of Rural Human Settlements in China

“…A significant number of people in rural areas have migrated to cities, and the decline in the countryside is one of the challenges that must be addressed in China's journey toward modernization [6]. According to historical experiences of modernization worldwide, failure to appropriately handle the relationships between workers and peasants, as well as between urban and rural areas, can lead to the unemployment of peasants, their influx into civilian areas of cities, difficulties or declines in the rural economy, hindrance or reversal of industrialization and urbanization processes, and, worse still, the emergence of social instability [8,9]. To promote the coordinated development of urban and rural areas, the sustainable development of villages, and the improvement of rural habitats, the Chinese Government has proposed a rural revitalization strategy.…”