Is Middle Income Trap a Threat for BRICS Countries?

Year 2020, Volume: 2 Issue: 1, 18 - 24, 24.06.2020

İzzet Taşar Halil Oğuzhan Ergür Yavuz Özek

Abstract

The middle income trap implies the economies that cannot show breakthrough after reaching a certain per capita income level and that they are stuck in that income level. The middle income trap prevents economies from reaching a higher income level and eliminating development differences with other countries. For this reason, whether countries are at risk of catching a middle income trap and structural measures should be taken to get rid of it for economies of the countries that are exposed to the trap are important. In this study, it is examined whether BRICS economies are in the middle income trap or not. Gross Domestic Product (GDP) per capita has been used variable. The analysis using the panel data method covers the years 1988-2018. According to the results obtained from the study, it was determined that the BRICS countries examined did not have the risk of middle income trap.

Keywords

BRICS Countries, Middle Income Trap, Panel Data

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