Determinants of middle income trap: A comparative analysis

The middle income trap refers to the situation where a country's economy enters a stagnant or slow growth trend at a certain level. Countries in this situation have difficulty in reaching higher income levels when they rise to a certain level and remain stuck at the income level they are at. This concept is a problem especially faced by developing countries and has become an important topic of discussion in the literature. This study is a literature review on the conceptual and theoretical framework of the middle income trap, indicators of its existence in the trapped countries, exit strategies from this trap and the general outlook of the trap in the Turkish Economy. Key Words Middle Income Trap, Innovation, R&D, Human Capital, Per Capita Income, Turkish Economy.