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Assessment Of The Possibility Of A Middle-Income Trap In Turkey

Author

Listed:
  • Ali Cem ÖZTÃœRK

    ((Correspondence author) PhD)

  • Burcu YAVUZ TÄ°FTÄ°KÇİGÄ°L

    (Istanbul MedipolUniversity)

Abstract

Turkey has been under the middle-income country category according to the income category classification of the World Bank. Turkey promoted to high-middle-income group in 2005 after spending more than 50 years in lower-middle-income group. The purpose of this study is to identify the presence of middle-income trap in Turkey. The study brings together the most recent theoretical studies from different perspectives with respect to the presence of MIT in Turkey along with Robertson and Ye approach in the empirical phase. Within the context of this study, structural break unit root test using current data obtained through the Atlas method is applied in order to evaluate Turkey’s middle-income trap status. The GNI per capita Atlas Method (current US $) data of the World Bank for the years 1967-2016 are used in the study. The empirical analysis briefly showed that Turkey is not in the MIT.

Suggested Citation

  • Ali Cem ÖZTÃœRK & Burcu YAVUZ TÄ°FTÄ°KÇİGÄ°L, 2020. "Assessment Of The Possibility Of A Middle-Income Trap In Turkey," JOURNAL OF LIFE ECONOMICS, Holistence Publications, vol. 7(4), pages 331-348, October.
    • Handle: RePEc:jle:journl:v:7:y:2020:i:4:p:331-348
    DOI: 10.15637/jlecon.7.025
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    More about this item

    Keywords

    Middle-income Trap; Turkey's Middle-income Trap disposition; Robertson and Ye Approach;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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