Middle Income Country Definition Economics

The middle income trap describes the process in which a fast growing developing economy finds its expansion slowing when it approaches the middle income level.

Middle income country definition economics. Low and middle income countries this is a list of countries with low income or middle income economies. Berglof said that to avoid this trap a country needs to demonstrate the capacity to transform itself and china has shown it can shift from investment led economic growth to productivity led growth. Mics are one of the income categories. And upper middle income economies those with a gni per capita between 4 046 and 12 535.

Many countries made the jump from low income to middle income but only a handful were able to make the final jump from middle income to high income. Barry eichengreen donghyun park and kwanho. The middle income trap is largely the result of a country s inability to continue the process of moving from low value added to high value added industries. The advantages of low cost labour and imitation of foreign technology can disappear when middle and upper middle income levels are reached.

The classification tables include all world bank members plus all other economies with populations of more than 30 000. Der begriff lower middle income country bzw. The world bank assigns the world s economies to four income groups low lower middle upper middle and high income countries. According to the world bank middle income countries mics are defined as economies with a gross national income gni per capita between 1 026 and 12 475.

The term country used interchangeably with economy does not imply political independence but refers to. The organisation for economic co operation and development oecd compiles this information and revises it every three years. The classifications are updated each year on july 1 and are based on gni per capita in current usd using the atlas method exchange rates of the previous year i e. They are defined as lower middle income economies those with a gni per capita between 1 036 and 4 045.

The world s middle income countries mics are a diverse group by size population and income level. The growth that brings a country out of extreme poverty is not always the type of growth that makes a country richer and lifts their per capita income above middle income levels. 2019 in this case. Land mit mittlerem einkommen im unteren bereich bezeichnet diejenigen länder deren bruttonationaleinkommen pro kopf zwischen 1 046 usd und 4 125 usd liegt.