The Middle-Income Trap from a Schumpeterian Perspective
This paper provides an outline for viewing the middle-income trap through the lens of the Schumpeterian growth paradigm, which places the notion of creative destruction at the center of economic growth.
Growth and development come from structural transformation, defined as the interplay between changes in economic structure and supporting institutions at different stages of development. The paper discusses how firms, competition, and institutions affect structural transformation.
- Growth through Creative Destruction
- Productivity Growth and Product Market Competition
- Trade Liberalization and Growth
- The Middle-income Trap in the Schumpeterian Growth Paradigm
- Growth and Firm Dynamics
- Implications for Emerging Asia
- Conclusions and Future Work