AN EMPIRICAL EVALUATION OF THE MIDDLE-INCOME TRAP AND IMMISERIZING GROWTH IN BRICS COUNTRIES

This study explores the middle-income trap and immiserizing growth with a particular focus on BRICS countries, which are at the center of the global economy due to many economic aspects. The existence of a middle-income trap was investigated by testing the stationarity of the time series of each BRI...

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Bibliographic Details
Published in:Journal of economic development 2023, 48(3), 191, pp.1-25
Main Authors: Apak, Sudi, Sarigül, Haşmet, Çakmak, Tuǧba Koyuncu
Format: Article
Language:English
Subjects:
Economic development
Economic growth
Exports
Global economy
Globalization
Growth rate
Income
International trade
Middle income
Productivity
Skills
Time series
경제학
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Summary:This study explores the middle-income trap and immiserizing growth with a particular focus on BRICS countries, which are at the center of the global economy due to many economic aspects. The existence of a middle-income trap was investigated by testing the stationarity of the time series of each BRICS country's per capita income relative to the USA which has a balanced-growth path close to the global technology frontier's growth rate. The findings indicate that Russia is lying within the middle-income trap. Cointegration analysis and robust regression techniques were performed to explore the immiserizing growth effects of merchandise exports. The findings reveal evidence of immiserizing growth for India and South Africa.
ISSN:0254-8372
DOI:10.35866/caujed.2023.48.3.001