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Escaping Income Trap Index (EITI)

Year 2024, Volume: 6 Issue: 2, 169 - 190, 31.08.2024
https://doi.org/10.38009/ekimad.1458361

Abstract

The Middle Income Trap is a major risk for many middle-income countries that cannot improve their manufacturing industry performance during the development phase and transition to the R&D and innovation-oriented service sector. Middle-income Countries (MICs) which were unable to increase their National Income Per Capita (NIPC) to become High-Income Countries (HICs) and were stuck at a certain income threshold fell into the Middle Income Trap (MIT). The study aims to analyze to measure the competitiveness of 65 countries with min-max methodology and rank them , so that the weakness indicators can be determined to setup a road map to increase competitiveness of Türkiye and to escape from MIT. In this study, 65 countries where 38 of them were HICs which might be taken as an example of economic development success and 26 of them as MICs those had strict competition in the international market along with Türkiye have been investigated by Escaping Income Trap Index (EITI). The index consisted of 5 sub-indices (dimensions) and 82 indicators. EITI scores were calculated for 65 countries in the study, and the relationships between index scores and National Income Per Capita (NIPC) was tested with both with the Cross-Sectional Data Method for the 2013-2014 period and with the Panel Data Method for the twenty-one periods between 1993-1994 and 2013-2014. It has been determined that Türkiye, which has a significant weight in the global economy, does not have a successful ranking in the general index and sub-indices obtained in the study. Türkiye ranked 61st in the index ranking calculated for 2013-2014, in which Switzerland ranked first, and the ratio of Türkiye's EITI score to the leading country scores was 65 percent. In other popular indices created by international organizations, this rate was 60 percent on average.

Ethical Statement

No need ethical approval.

References

  • Agénor, P.R. and Canuto, O. (2012). Middle-Income Growth Traps. The World Bank Policy Research Working paper. No. 6210. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2152800## (Accessed: November 8, 2017).
  • Agénor, P.R., Canuto, O. and Jelenic, M. (2012). Avoiding Middle-Income Growth Trap. The World Bank Economic Premise. No.98, pp.1-7. http://siteresources.worldbank.org/EXTPREMNET/Resources/EP98.pdf (Accessed: November 8, 2017).
  • Agénor, P.R., (2017). Caught in the Middle? The Economics of Middle-Income Trap. Journal of Economic Surveys, 31 (3), pp. 771–791 https://onlinelibrary.wiley.com/doi/epdf/10.1111/joes.12175?saml_referrer (Accessed: July 7, 2024).
  • Apak, S., Sarigül , H. and Koyuncu, T.Ç. (2023). An Empirical Evaluation of the Middle-Income Trap and Immiserizing Growth in BRICS Countries. Journal of Economic Development, The Economic Research Institute, Chung-Ang University, (3), pp. 1-25 https://jed.cau.ac.kr/archives/48-3/48-3-1.pdf (Accessed: July 7, 2024).
  • Asian Development Bank(ADB). (2011). Asia 2050: Realizing the Asian Century. Singapore. http://www.iopsweb.org/researchandworkingpapers/48263622.pdf (Accessed: November 8, 2017).
  • Canuto, O., Dinh, H.T. and Aynaoui, K.E. (2024). The Middle-Income Trap and Resource-Based Growth: the Case of Brazil. Research papers & Policy papers 1977, Policy Center for the New South. https://www.policycenter.ma/sites/default/files/2024-03/RP_05-24%20%28Otaviano%20Canuto%20-%20Hinh%20T%20Dinh%20and%20Karim%20El%20Aynaoui%20%29.pdf (Accessed: July 7, 2024).
  • Cm, J., Hoang, N. T. and Yarram, S. R. (2022). Human capital and the middle-income trap revisited. Applied Economics, 55(34), 4003–4022. https://doi.org/10.1080/00036846.2022.2121379 (Accessed: July 7, 2024).
  • CM, J., Hoang, N. T. and Yarram, S. R. (2023). The transition from middle-income trap: role of innovation and economic globalisation. Applied Economics, 56(1), 1–21. https://doi.org/10.1080/00036846.2023.2267821 (Accessed: July 7, 2024).
  • Eichengreen, B., D. Park, K. Shin. (2012). When Fast-Growing Economies Slow Down: International Evidence and Implications for China. The Earth Institute at Columbia University and the Massachusetts Institute of Technology. http://www.mitpressjournals.org/doi/pdf/10.1162/ASEP_a_00118 (Accessed: November 8, 2017).
  • Eichengreen, B., D. Park, K. Shin. (2013). Growth Slowdowns Redux: New Evidence on the Middle-income Trap. NBER Working Paper Series. No.18673. http://www.nber.org/papers/w18673.pdf (Accessed: November 8, 2017).
  • Felipe, J., Abdon, A. and Kumar, U. (2012). Tracking the Middle-income Trap: What Is It, Who Is in It, and Why? Levy Economic Institute Working Paper. No.715. http://www.levyinstitute.org/pubs/wp_715.pdf (Accessed: November 8, 2017).
  • Flaaen, A., Ghani, E. and Mishra, S. (2013). How To Avoid Middle Income Trap? Evidence from Malaysia. The World Bank Policy Research Working Paper. No. 6427. http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2013/04/26/000158349_20130426103627/Rendered/PDF/wps6427.pdf (Accessed: November 8, 2017).
  • Garrett, G. (2004). Globalization’s Missing Middle. Foreign Affairs. Vol. 83, pp. 84-96. https://www.foreignaffairs.com/articles/2004-11-01/globalizations-missing-middle (Accessed: 08.11.2017).
  • Gerson, P. and Flanagan, M. (2014). Türkiye the Staff Report. IMF Country Report No.14/329. https://www.imf.org/external/pubs/ft/scr/2014/cr14329.pdf (Accessed: November 8, 2017).
  • Gill, I. and Kharas, H. (2009). Gravity and Friction in Growing East Asia. Oxford Review of Economic Policy, Vol. 25. No. 2, pp.190-204. http://www.iig.ox.ac.uk/output/articles/OxREP/iiG-OxREP-Gill-Kharas.pdf (Accessed: November 8, 2017).
  • Hu, X., Wan, G., Yang, C., and Zhang, A. (2023). Inequality and the middle-income trap. Journal of International Development, 35(7), 1684–1710. https://doi.org/10.1002/jid.3747HU et al .1700 (Accessed: July 7, 2024)
  • IMD (2016). IMD World Competitiveness Yearbook 2016. https://www.imd.org/uupload/imd.website/wcc/scoreboard.pdf (Accessed: January 17, 2024)
  • IMD (2023). Data Processing Methodology: Standard Deviation Method https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-competitiveness-ranking/ (Accessed: January 17, 2024)
  • Impavido, G. and Mikkelsen, U. (2014). Türkiye’s Recipe to Escape the Middle-Income Trap. International Monetary Fund’s Global Economy Forum. http://blog-imfdirect.imf.org/2014/12/15/Türkiyes-recipe-to-escape-the-middle-income-trap/ (Accessed: November 8, 2017).
  • Islam, Md. J. A., Mahmud, I., Islam, A., Sobhani, F. A., Hassan, Md. S., & Ahsan, A. (2023). Escaping the middle-income trap: A study on a developing economy. Cogent Social Sciences, 9(2). https://doi.org/10.1080/23311886.2023.2286035 (Accessed: July 7, 2024).
  • Jankowska, A., Nagengast, A. J. and Perea, J. R. (2012). The Middle-Income Trap: Comparing Asian and Latin American Experiences. OECD Development Center Policy Insights. No. 96. http://www.oecd.org/dev/50305488.pdf (Accessed: November 8, 2017).
  • Naseemullah, A. (2022). The International Political Economy of the Middle-income Trap. The Journal of Development Studies, 58(10), 2154–2171. https://doi.org/10.1080/00220388.2022.2096440 (Accessed: July 8, 2024).
  • OSYM (2015). 2015 Akademik Personel ve Lisansüstü Eğitimi Giriş Sınavı (ALES) Başvuru Kılavuzu. https://dokuman.osym.gov.tr/pdfdokuman/2015/ALESILKBAHAR/2015-ALES-BASVURUKILAVUZ05052015d.pdf (Accessed: January 17, 2024)
  • Pruchnik, K. and Zowczak, J. (2017). Middle-Income Trap: Review of the Conceptual Framework. ADBI Working Paper 760. Tokyo: Asian Development Bank Institute. https://www.adb.org/publications/middle-income-trap-mit-review-conceptual-framework (Accessed: July 7, 2024)
  • PWC. (2014). Escape Index. http://preview.thenewsmarket.com/Previews/PWC/DocumentAssets/316359.pdf (Accessed: November 8, 2017).
  • Raiser, M. (2014). Overview. M. Raiser (ed). Türkiye’s Transitions: Integration, Inclusion, Institutions. The World Bank, Report No. 90509, pp.3-24. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/08/26/090224b083099d03/3_0/Rendered/PDF/Main0report.pdf (Accessed: November 8, 2017).
  • Ratnasari, V., Audha, S.H., Dani, A.T.R. (2023). Statistical modeling to analyze factors affecting the middle-income trap in Indonesia using panel data regression. MethodsX, Vol. 11 (102379). https://doi.org/10.1016/j.mex.2023.102379 (Accessed: July 7, 2024).
  • Song, H., Buts, C. and Jegers, M. (2023). The Middle-Income Trap and Competition Policy: An Institutional Analysis. Asian Journal of Law and Economics, 14 (2), pp. 135-161. https://doi.org/10.1515/ajle-2022-0102 (Accessed: July 7, 2024).
  • Tho, T. V. (2013). The Middle-Income Trap: Issues for Members of the Association of Southeast Asian Nations. Journal of Economics and Business. Vol. 29. No. 2, pp.107-128. http://tapchi.vnu.edu.vn/upload/2014/01/1010/3.pdf (Accessed: November 1, 2015).
  • World Bank (2014a). Data/ World Bank Country and Lending Groups. https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups#:~:text=For%20the%20current%202024%20fiscal,those%20with%20a%20GNI%20per (Accessed: February 4, 2024)
  • World Bank (2014b). World Bank Open Data. https://data.worldbank.org/ (Accessed: February 4, 2024)
  • World Economic Forum (WEF) (2014). The Global Competitiveness Report 2014–2015. https://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf (Accessed: January 17, 2024)
  • Yereli, A.B., Karasac, F. and Akbayır F. (2019). Middle-Income Trap: A Literature Review. Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi, 22 (2), 950-964 https://dergipark.org.tr/tr/download/article-file/865233 (Accessed: July 7, 2024)
  • Zhuang, J., P. Vandenberg and Y. Huang. (2012). Growing beyond the Low-Cost Advantage How the People’s Republic of China can Avoid the Middle-Income Trap. Asian Development Bank. http://www.adb.org/sites/default/files/publication/30036/growing-beyond-prc-avoid-middle-income-trap.pdf (Accessed: November 8, 2017).

Gelir Tuzağından Kaçış Endeksi (GTKE)

Year 2024, Volume: 6 Issue: 2, 169 - 190, 31.08.2024
https://doi.org/10.38009/ekimad.1458361

Abstract

Orta Gelir Tuzağı kalkınma aşamasında imalat sanayi performansını daha ileri götürüp Ar-Ge ve inovasyon odaklı hizmet sektörüne geçiş yapamayan birçok orta gelirli ülkelerin önündeki büyük bir risktir. Kişi Başına Milli Gelirini (KBMG) Yüksek Gelirli Ülke (YGÜ) sınıfına yükseltemeyen ve belirli bir gelir eşiğinde sıkışıp kalan orta gelirli ülkeler (OGÜ), Orta Gelir Tuzağına (OGT) düşmüş sayılır. Çalışma, 65 ülkenin rekabet gücünü minimum-maksimum metodolojisi ile ölçerek analiz etmeyi ve sıralamayı amaçlayarak, Türkiye'nin rekabet gücünü olumsuz etkileyen göstergelerin belirlenerek rekabet gücünün arttırılması ve MIT'den kaçış için bir yol haritası oluşturulmasını amaçlamaktadır. Bu çalışmada, örnek ülke olarak incelenen Türkiye ile birlikte, uluslararası pazarda sıkı rekabet içinde olduğu 26 OGÜ ve ekonomik kalkınma başarısına örnek alınabilecek 38 YGÜ olmak üzere toplam 65 ülke ele alınmıştır. Çalışmada, Gelir Tuzağından Kaçış Endeksi (GTKE) incelenmiştir. Endeks çok boyutlu olarak 5 alt endeks ve 82 göstergeden oluşmuştur. Çalışmada yer alan 65 ülke için GTKE puanları hesaplanmış ve endeks skorları Kişi Başına Düşen Milli Gelir (KBDMG) ile ilişkileri hem 2013-2014 dönemi için Kesitsel Veri Yöntemi ile hem de 1993-1994 ve 2013-2014 yılları arasındaki yirmi bir dönem için Panel Veri Yöntemi ile test edilmiştir. Küresel ekonomide önemli bir ağırlığa sahip olan Türkiye'nin çalışmada elde edilen genel endeks ve alt endekslerde başarılı bir sıralamaya sahip olmadığı tespit edilmiştir. Türkiye, İsviçre'nin ilk sırada yer aldığı 2013-2014 için hesaplanan endeks sıralamasında 61. olmuş, Türkiye’nin GTKE puanının lider ülke puanlarına oranı ise yüzde 65 olmuştur. Uluslararası kuruluşların oluşturduğu diğer popüler endekslerde ise bu oran ortalama yüzde 60 olmuştur.

Ethical Statement

Etik kurulu kararına gerek yoktur.

References

  • Agénor, P.R. and Canuto, O. (2012). Middle-Income Growth Traps. The World Bank Policy Research Working paper. No. 6210. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2152800## (Accessed: November 8, 2017).
  • Agénor, P.R., Canuto, O. and Jelenic, M. (2012). Avoiding Middle-Income Growth Trap. The World Bank Economic Premise. No.98, pp.1-7. http://siteresources.worldbank.org/EXTPREMNET/Resources/EP98.pdf (Accessed: November 8, 2017).
  • Agénor, P.R., (2017). Caught in the Middle? The Economics of Middle-Income Trap. Journal of Economic Surveys, 31 (3), pp. 771–791 https://onlinelibrary.wiley.com/doi/epdf/10.1111/joes.12175?saml_referrer (Accessed: July 7, 2024).
  • Apak, S., Sarigül , H. and Koyuncu, T.Ç. (2023). An Empirical Evaluation of the Middle-Income Trap and Immiserizing Growth in BRICS Countries. Journal of Economic Development, The Economic Research Institute, Chung-Ang University, (3), pp. 1-25 https://jed.cau.ac.kr/archives/48-3/48-3-1.pdf (Accessed: July 7, 2024).
  • Asian Development Bank(ADB). (2011). Asia 2050: Realizing the Asian Century. Singapore. http://www.iopsweb.org/researchandworkingpapers/48263622.pdf (Accessed: November 8, 2017).
  • Canuto, O., Dinh, H.T. and Aynaoui, K.E. (2024). The Middle-Income Trap and Resource-Based Growth: the Case of Brazil. Research papers & Policy papers 1977, Policy Center for the New South. https://www.policycenter.ma/sites/default/files/2024-03/RP_05-24%20%28Otaviano%20Canuto%20-%20Hinh%20T%20Dinh%20and%20Karim%20El%20Aynaoui%20%29.pdf (Accessed: July 7, 2024).
  • Cm, J., Hoang, N. T. and Yarram, S. R. (2022). Human capital and the middle-income trap revisited. Applied Economics, 55(34), 4003–4022. https://doi.org/10.1080/00036846.2022.2121379 (Accessed: July 7, 2024).
  • CM, J., Hoang, N. T. and Yarram, S. R. (2023). The transition from middle-income trap: role of innovation and economic globalisation. Applied Economics, 56(1), 1–21. https://doi.org/10.1080/00036846.2023.2267821 (Accessed: July 7, 2024).
  • Eichengreen, B., D. Park, K. Shin. (2012). When Fast-Growing Economies Slow Down: International Evidence and Implications for China. The Earth Institute at Columbia University and the Massachusetts Institute of Technology. http://www.mitpressjournals.org/doi/pdf/10.1162/ASEP_a_00118 (Accessed: November 8, 2017).
  • Eichengreen, B., D. Park, K. Shin. (2013). Growth Slowdowns Redux: New Evidence on the Middle-income Trap. NBER Working Paper Series. No.18673. http://www.nber.org/papers/w18673.pdf (Accessed: November 8, 2017).
  • Felipe, J., Abdon, A. and Kumar, U. (2012). Tracking the Middle-income Trap: What Is It, Who Is in It, and Why? Levy Economic Institute Working Paper. No.715. http://www.levyinstitute.org/pubs/wp_715.pdf (Accessed: November 8, 2017).
  • Flaaen, A., Ghani, E. and Mishra, S. (2013). How To Avoid Middle Income Trap? Evidence from Malaysia. The World Bank Policy Research Working Paper. No. 6427. http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2013/04/26/000158349_20130426103627/Rendered/PDF/wps6427.pdf (Accessed: November 8, 2017).
  • Garrett, G. (2004). Globalization’s Missing Middle. Foreign Affairs. Vol. 83, pp. 84-96. https://www.foreignaffairs.com/articles/2004-11-01/globalizations-missing-middle (Accessed: 08.11.2017).
  • Gerson, P. and Flanagan, M. (2014). Türkiye the Staff Report. IMF Country Report No.14/329. https://www.imf.org/external/pubs/ft/scr/2014/cr14329.pdf (Accessed: November 8, 2017).
  • Gill, I. and Kharas, H. (2009). Gravity and Friction in Growing East Asia. Oxford Review of Economic Policy, Vol. 25. No. 2, pp.190-204. http://www.iig.ox.ac.uk/output/articles/OxREP/iiG-OxREP-Gill-Kharas.pdf (Accessed: November 8, 2017).
  • Hu, X., Wan, G., Yang, C., and Zhang, A. (2023). Inequality and the middle-income trap. Journal of International Development, 35(7), 1684–1710. https://doi.org/10.1002/jid.3747HU et al .1700 (Accessed: July 7, 2024)
  • IMD (2016). IMD World Competitiveness Yearbook 2016. https://www.imd.org/uupload/imd.website/wcc/scoreboard.pdf (Accessed: January 17, 2024)
  • IMD (2023). Data Processing Methodology: Standard Deviation Method https://www.imd.org/centers/wcc/world-competitiveness-center/rankings/world-competitiveness-ranking/ (Accessed: January 17, 2024)
  • Impavido, G. and Mikkelsen, U. (2014). Türkiye’s Recipe to Escape the Middle-Income Trap. International Monetary Fund’s Global Economy Forum. http://blog-imfdirect.imf.org/2014/12/15/Türkiyes-recipe-to-escape-the-middle-income-trap/ (Accessed: November 8, 2017).
  • Islam, Md. J. A., Mahmud, I., Islam, A., Sobhani, F. A., Hassan, Md. S., & Ahsan, A. (2023). Escaping the middle-income trap: A study on a developing economy. Cogent Social Sciences, 9(2). https://doi.org/10.1080/23311886.2023.2286035 (Accessed: July 7, 2024).
  • Jankowska, A., Nagengast, A. J. and Perea, J. R. (2012). The Middle-Income Trap: Comparing Asian and Latin American Experiences. OECD Development Center Policy Insights. No. 96. http://www.oecd.org/dev/50305488.pdf (Accessed: November 8, 2017).
  • Naseemullah, A. (2022). The International Political Economy of the Middle-income Trap. The Journal of Development Studies, 58(10), 2154–2171. https://doi.org/10.1080/00220388.2022.2096440 (Accessed: July 8, 2024).
  • OSYM (2015). 2015 Akademik Personel ve Lisansüstü Eğitimi Giriş Sınavı (ALES) Başvuru Kılavuzu. https://dokuman.osym.gov.tr/pdfdokuman/2015/ALESILKBAHAR/2015-ALES-BASVURUKILAVUZ05052015d.pdf (Accessed: January 17, 2024)
  • Pruchnik, K. and Zowczak, J. (2017). Middle-Income Trap: Review of the Conceptual Framework. ADBI Working Paper 760. Tokyo: Asian Development Bank Institute. https://www.adb.org/publications/middle-income-trap-mit-review-conceptual-framework (Accessed: July 7, 2024)
  • PWC. (2014). Escape Index. http://preview.thenewsmarket.com/Previews/PWC/DocumentAssets/316359.pdf (Accessed: November 8, 2017).
  • Raiser, M. (2014). Overview. M. Raiser (ed). Türkiye’s Transitions: Integration, Inclusion, Institutions. The World Bank, Report No. 90509, pp.3-24. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/08/26/090224b083099d03/3_0/Rendered/PDF/Main0report.pdf (Accessed: November 8, 2017).
  • Ratnasari, V., Audha, S.H., Dani, A.T.R. (2023). Statistical modeling to analyze factors affecting the middle-income trap in Indonesia using panel data regression. MethodsX, Vol. 11 (102379). https://doi.org/10.1016/j.mex.2023.102379 (Accessed: July 7, 2024).
  • Song, H., Buts, C. and Jegers, M. (2023). The Middle-Income Trap and Competition Policy: An Institutional Analysis. Asian Journal of Law and Economics, 14 (2), pp. 135-161. https://doi.org/10.1515/ajle-2022-0102 (Accessed: July 7, 2024).
  • Tho, T. V. (2013). The Middle-Income Trap: Issues for Members of the Association of Southeast Asian Nations. Journal of Economics and Business. Vol. 29. No. 2, pp.107-128. http://tapchi.vnu.edu.vn/upload/2014/01/1010/3.pdf (Accessed: November 1, 2015).
  • World Bank (2014a). Data/ World Bank Country and Lending Groups. https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups#:~:text=For%20the%20current%202024%20fiscal,those%20with%20a%20GNI%20per (Accessed: February 4, 2024)
  • World Bank (2014b). World Bank Open Data. https://data.worldbank.org/ (Accessed: February 4, 2024)
  • World Economic Forum (WEF) (2014). The Global Competitiveness Report 2014–2015. https://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf (Accessed: January 17, 2024)
  • Yereli, A.B., Karasac, F. and Akbayır F. (2019). Middle-Income Trap: A Literature Review. Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi, 22 (2), 950-964 https://dergipark.org.tr/tr/download/article-file/865233 (Accessed: July 7, 2024)
  • Zhuang, J., P. Vandenberg and Y. Huang. (2012). Growing beyond the Low-Cost Advantage How the People’s Republic of China can Avoid the Middle-Income Trap. Asian Development Bank. http://www.adb.org/sites/default/files/publication/30036/growing-beyond-prc-avoid-middle-income-trap.pdf (Accessed: November 8, 2017).
There are 34 citations in total.

Details

Primary Language English
Subjects Growth, Development Economics - Macro, International Economics (Other)
Journal Section Articles
Authors

Metin Gürler 0000-0002-9263-0258

Publication Date August 31, 2024
Submission Date March 25, 2024
Acceptance Date July 17, 2024
Published in Issue Year 2024 Volume: 6 Issue: 2

Cite

APA Gürler, M. (2024). Escaping Income Trap Index (EITI). Ekonomi İşletme Ve Maliye Araştırmaları Dergisi, 6(2), 169-190. https://doi.org/10.38009/ekimad.1458361