Middle-Income Growth Traps
This paper studies the existence of middle-income growth traps in a two-period overlapping generations model of economic growth with two types of labor and endogenous occupational choices. It also distinguishes between "basic" and "a...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2012/09/16769897/middle-income-growth-traps http://hdl.handle.net/10986/12004 |
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okr-10986-120042021-04-23T14:02:59Z Middle-Income Growth Traps Agénor, Pierre-Richard Canuto, Otaviano ACCOUNTING ADVERSE CONSEQUENCES AGGREGATE DEMAND AGGREGATE DEMAND CURVE AGRICULTURE ALLOCATION ARBITRAGE BANK POLICY BARRIERS TO ENTRY BEQUESTS BONDS BRAIN DRAINS BUDGET CONSTRAINT BUDGET CONSTRAINTS BUSINESS CYCLE CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS COMPETITIVENESS CONCAVE CURVE CONSTANT RETURNS DEBTS DECREASING RETURNS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH EMPLOYMENT ENDOGENOUS INNOVATION EQUILIBRIUM EXCLUSIVE RIGHTS EXPENDITURE EXPORTS FINANCES FINANCIAL CRISIS FORMAL ANALYSIS GDP GDP PER CAPITA GOVERNMENT BUDGET GOVERNMENT FUNDING GOVERNMENT REVENUES GOVERNMENT SPENDING GROWTH ACCOUNTING GROWTH MODEL GROWTH MODELS GROWTH PROCESS GROWTH RATE HOLDING HUMAN CAPITAL IMPERFECT COMPETITION IMPERFECT SUBSTITUTES INCOME INCOME GROWTH INCOME LEVELS INFRASTRUCTURE INVESTMENT INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUT INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS KNOWLEDGE DIFFUSION LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKET RIGIDITIES LABOR SUPPLY This paper studies the existence of middle-income growth traps in a two-period overlapping generations model of economic growth with two types of labor and endogenous occupational choices. It also distinguishes between "basic" and "advanced" infrastructure, with the latter promoting design activities, and accounts for a knowledge network externality associated with product diversification. Multiple steady-state equilibria may emerge, one of them taking the form of a low-growth trap characterized by low productivity growth and a misallocation of talent -- defined as a relatively low share of high-ability workers in design activities. Improved access to advanced infrastructure may help escape from that trap. The implications of other public policies, including the protection of property rights and labor market reforms, are also discussed. 2012-12-21T19:50:29Z 2012-12-21T19:50:29Z 2012-09 http://documents.worldbank.org/curated/en/2012/09/16769897/middle-income-growth-traps http://hdl.handle.net/10986/12004 English en_US Policy Research working paper;no. 6210 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ADVERSE CONSEQUENCES AGGREGATE DEMAND AGGREGATE DEMAND CURVE AGRICULTURE ALLOCATION ARBITRAGE BANK POLICY BARRIERS TO ENTRY BEQUESTS BONDS BRAIN DRAINS BUDGET CONSTRAINT BUDGET CONSTRAINTS BUSINESS CYCLE CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS COMPETITIVENESS CONCAVE CURVE CONSTANT RETURNS DEBTS DECREASING RETURNS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH EMPLOYMENT ENDOGENOUS INNOVATION EQUILIBRIUM EXCLUSIVE RIGHTS EXPENDITURE EXPORTS FINANCES FINANCIAL CRISIS FORMAL ANALYSIS GDP GDP PER CAPITA GOVERNMENT BUDGET GOVERNMENT FUNDING GOVERNMENT REVENUES GOVERNMENT SPENDING GROWTH ACCOUNTING GROWTH MODEL GROWTH MODELS GROWTH PROCESS GROWTH RATE HOLDING HUMAN CAPITAL IMPERFECT COMPETITION IMPERFECT SUBSTITUTES INCOME INCOME GROWTH INCOME LEVELS INFRASTRUCTURE INVESTMENT INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUT INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS KNOWLEDGE DIFFUSION LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKET RIGIDITIES LABOR SUPPLY |
| spellingShingle |
ACCOUNTING ADVERSE CONSEQUENCES AGGREGATE DEMAND AGGREGATE DEMAND CURVE AGRICULTURE ALLOCATION ARBITRAGE BANK POLICY BARRIERS TO ENTRY BEQUESTS BONDS BRAIN DRAINS BUDGET CONSTRAINT BUDGET CONSTRAINTS BUSINESS CYCLE CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS COMPETITIVENESS CONCAVE CURVE CONSTANT RETURNS DEBTS DECREASING RETURNS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISCOUNT RATE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH EMPLOYMENT ENDOGENOUS INNOVATION EQUILIBRIUM EXCLUSIVE RIGHTS EXPENDITURE EXPORTS FINANCES FINANCIAL CRISIS FORMAL ANALYSIS GDP GDP PER CAPITA GOVERNMENT BUDGET GOVERNMENT FUNDING GOVERNMENT REVENUES GOVERNMENT SPENDING GROWTH ACCOUNTING GROWTH MODEL GROWTH MODELS GROWTH PROCESS GROWTH RATE HOLDING HUMAN CAPITAL IMPERFECT COMPETITION IMPERFECT SUBSTITUTES INCOME INCOME GROWTH INCOME LEVELS INFRASTRUCTURE INVESTMENT INNOVATION INTERMEDIATE GOODS INTERMEDIATE INPUT INTERNATIONAL BANK INTERNATIONAL ECONOMICS INTERNATIONAL MARKETS KNOWLEDGE DIFFUSION LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKET RIGIDITIES LABOR SUPPLY Agénor, Pierre-Richard Canuto, Otaviano Middle-Income Growth Traps |
| relation |
Policy Research working paper;no. 6210 |
| description |
This paper studies the existence of
middle-income growth traps in a two-period overlapping
generations model of economic growth with two types of labor
and endogenous occupational choices. It also distinguishes
between "basic" and "advanced"
infrastructure, with the latter promoting design activities,
and accounts for a knowledge network externality associated
with product diversification. Multiple steady-state
equilibria may emerge, one of them taking the form of a
low-growth trap characterized by low productivity growth and
a misallocation of talent -- defined as a relatively low
share of high-ability workers in design activities. Improved
access to advanced infrastructure may help escape from that
trap. The implications of other public policies, including
the protection of property rights and labor market reforms,
are also discussed. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Agénor, Pierre-Richard Canuto, Otaviano |
| author_facet |
Agénor, Pierre-Richard Canuto, Otaviano |
| author_sort |
Agénor, Pierre-Richard |
| title |
Middle-Income Growth Traps |
| title_short |
Middle-Income Growth Traps |
| title_full |
Middle-Income Growth Traps |
| title_fullStr |
Middle-Income Growth Traps |
| title_full_unstemmed |
Middle-Income Growth Traps |
| title_sort |
middle-income growth traps |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2012/09/16769897/middle-income-growth-traps http://hdl.handle.net/10986/12004 |
| _version_ |
1764418848085245952 |