TWO MANIFESTATIONS OF THE MIDDLE-INCOME TRAP IN EAST-CENTRAL EUROPE

The paper attempts to reinterpret the concept of the middle-income trap and develops the theory of participation and self-effort. On this basis, the paper distinguishes two different types of middle-income traps. The exclusion trap, which is the result of a one-sided focus on the self-effort, and th...

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Main Author: TAMÁS TIBOR CSONTOS
Format: Article
Language:English
Published: Nicolae Titulescu University 2024-12-01
Series:Global Economic Observer
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Online Access:http://www.globeco.ro/wp-content/uploads/vol/split/vol_12_no_2/geo_2024_vol12_no2_art_002.pdf
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author TAMÁS TIBOR CSONTOS
author_facet TAMÁS TIBOR CSONTOS
author_sort TAMÁS TIBOR CSONTOS
collection DOAJ
description The paper attempts to reinterpret the concept of the middle-income trap and develops the theory of participation and self-effort. On this basis, the paper distinguishes two different types of middle-income traps. The exclusion trap, which is the result of a one-sided focus on the self-effort, and the vulnerability trap, which is the result of a one-sided focus on participation. The model argues that catching-up can be achieved when the participation and the self-effort are in harmony. The paper also uses this approach to analyse the middle-income trap in East-Central European countries, demonstrating the empirical validity of the theory. It associates socialist planned economies with the exclusion trap, while identifying the dependent market economy model that emerged after regime change with the vulnerability trap.
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institution Kabale University
issn 2343-9742
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language English
publishDate 2024-12-01
publisher Nicolae Titulescu University
record_format Article
series Global Economic Observer
spelling doaj-art-3d5f0fadca284d03a1c31616c3afd96b2025-08-20T03:41:48ZengNicolae Titulescu UniversityGlobal Economic Observer2343-97422343-97502024-12-011221524TWO MANIFESTATIONS OF THE MIDDLE-INCOME TRAP IN EAST-CENTRAL EUROPETAMÁS TIBOR CSONTOS0Institute of World Economics Centre for Economic and Regional Studies 1097 Budapest, Tóth Kálmán u. 4., HUNGARY, csontos.tamas@krtk.huThe paper attempts to reinterpret the concept of the middle-income trap and develops the theory of participation and self-effort. On this basis, the paper distinguishes two different types of middle-income traps. The exclusion trap, which is the result of a one-sided focus on the self-effort, and the vulnerability trap, which is the result of a one-sided focus on participation. The model argues that catching-up can be achieved when the participation and the self-effort are in harmony. The paper also uses this approach to analyse the middle-income trap in East-Central European countries, demonstrating the empirical validity of the theory. It associates socialist planned economies with the exclusion trap, while identifying the dependent market economy model that emerged after regime change with the vulnerability trap.http://www.globeco.ro/wp-content/uploads/vol/split/vol_12_no_2/geo_2024_vol12_no2_art_002.pdfmiddle-income trapeast-central europedependent market economy
spellingShingle TAMÁS TIBOR CSONTOS
TWO MANIFESTATIONS OF THE MIDDLE-INCOME TRAP IN EAST-CENTRAL EUROPE
Global Economic Observer
middle-income trap
east-central europe
dependent market economy
title TWO MANIFESTATIONS OF THE MIDDLE-INCOME TRAP IN EAST-CENTRAL EUROPE
title_full TWO MANIFESTATIONS OF THE MIDDLE-INCOME TRAP IN EAST-CENTRAL EUROPE
title_fullStr TWO MANIFESTATIONS OF THE MIDDLE-INCOME TRAP IN EAST-CENTRAL EUROPE
title_full_unstemmed TWO MANIFESTATIONS OF THE MIDDLE-INCOME TRAP IN EAST-CENTRAL EUROPE
title_short TWO MANIFESTATIONS OF THE MIDDLE-INCOME TRAP IN EAST-CENTRAL EUROPE
title_sort two manifestations of the middle income trap in east central europe
topic middle-income trap
east-central europe
dependent market economy
url http://www.globeco.ro/wp-content/uploads/vol/split/vol_12_no_2/geo_2024_vol12_no2_art_002.pdf
work_keys_str_mv AT tamastiborcsontos twomanifestationsofthemiddleincometrapineastcentraleurope