Recent Publications
Taiwan Economic Research Monthly
The causes of the mid-income trap and the current situation in China
Numerous nations face formidable challenges as they navigate their economies into the middle-income bracket, often struggling to sustain growth. This predicament is referred to as the “middle-income trap”. Recently, prominent economist Paul Krugman, along with others, has voiced concerns that China might be at risk of falling into this trap as well. It's essential to recognize that the path to economic development is rarely a seamless journey. Low-income countries frequently find it arduous to initiate development, while high-income nations sometimes grapple with sluggish growth or even economic stagnation and regression. However, it's vital to note that not all middle-income countries are destined to remain ensnared in this trap. The circumstances in each nation are distinctive, and various factors come into play. Rather than dwelling on the definition or existence of the trap, what holds more significance is comprehending these multifaceted factors and devising tailored strategies to surmount the specific challenges faced by each country.