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Addressing the Middle-Income Trap: Experience of Indonesia
| Content Provider | Scilit |
|---|---|
| Author | Aviliani, Aviliani Siregar, Hermanto Hasanah, Heni |
| Copyright Year | 2014 |
| Description | Middle-income trap (MIT) refers to a condition in which the middle-income countries are not able to follow the trajectory of an economic growth to achieve a new level as high-income countries. Using descriptive analysis, more than 30 countries are found to experience MIT including China and India. Some of countries in Africa are even experiencing low-income trap. Between 1970 and 2011 Indonesia was actually in a transition condition of low-income to middle-income economy. Indonesia has begun to face constraints that would inhibit the sustained growth, particularly on the supply side of the economy. It is better to do the anticipatory actions that can strengthen the economy's fundamentals in order to avoid MIT. The estimated regression model used in this study indicates that the increase in current national income is affected by the previous national income and the share of gross fixed capital formation to GDP. So, to avoid MIT, the government of Indonesia should prioritize on investment for developing growth centers as well as for improving human resources and technology application. |
| ISSN | 19112017 |
| e-ISSN | 19112025 |
| DOI | 10.5539/ass.v10n7p163 |
| Journal | Asian Social Science |
| Issue Number | 7 |
| Volume Number | 10 |
| Language | English |
| Publisher | Canadian Center of Science and Education |
| Publisher Date | 2014-03-31 |
| Access Restriction | Open |
| Subject Keyword | Social Sciences, Interdisciplinary Income Trap Middle Income Addressing the Middle Experience of Indonesia |
| Content Type | Text |
| Resource Type | Article |
| Subject | Arts and Humanities Economics, Econometrics and Finance Social Sciences |
