Evaluation of middle income trap and solution search in selected countries and Turkey

The concept of Middle Income Trap; states that after transitioning from low-income to middle-income, countries can not move to the high-income countries. Countries using the concept of Middle Income Trap have shifted from low-income to middle-income by providing high growth rates. However, after the transition to the middle income group, they were caught in the middle income trap due to the failure of sustaining high growth rates. These countries need to produce policies to escape the middle income trap. The study consists of two parts. In the first part, the concept of middle income trap is explained. In addition, the threshold gross domestic product value, which represents the middle income level and how it is mathematically determined are discussed with different approaches. In the second part, the experiences of developed and developing countries are discussed and the processes of the countries capture to the Middle Income Trap and the economic policies implemented by the countries for the purpose of exit from the Middle Income Trap are discussed. While discussing the economic policies, national economic indicators have been interpreted by using the macroeconomic data of the countries. At the end of second part, causes long-term growth performance of Turkey's middle-income trap will be faced with the risk has been revealed by considering. Accordingly, Turkey's will to jump to high-income structural reform were evaluated. These reforms include increasing human capital, ensuring the rule of law and institutional quality. Together with all these reforms, the creation of a competitive production system with innovation policies was presented as a policy proposal for the exit from Middle Income Trap.