Avoiding middle-income growth traps

Pierre-Richard Agénor, Otaviano Canuto, Michael Jelenic 21 December 2012

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In the postwar era, many countries have managed to quickly reach middle-income status, but few have gone on to become high-income economies1. Rather, after an initial period of rapid ascent, many countries have experienced a sharp slowdown in growth and productivity, falling into what has been called a ‘middle-income trap’:

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Topics:  Development International trade Labour markets Productivity and Innovation

Tags:  income, innovation, labour market reform, investment, middle income