Why Is It a Trap: The Political Economy of the Middle-Income Trap

Friday, 3 July 2015: 2:15 PM-3:45 PM
CLM.3.06 (Clement House)
Richard Doner, Emory University, Atlanta, GA
Ben Schneider, MIT, Cambridge, MA
This paper  proposes a path-dependent explanation of the trap through a focus on a small number of middle-income countries in Latin America and Southeast Asia.  The paper first highlights the policy implementation and institutional difficulties in moving out of the trap through upgrading; it then focuses on the ways in which prior development trajectories have impeded the development of interests and coalitions required for upgrading.