DOES TURKEY SUFFER FROM MIDDLE INCOME TRAP OR IS IT STUCK IN PERMANENT LOW GROWTH?

Authors : Fatma DOĞRUEL, A Suut DOĞRUEL

Pages : 19-27

View : 15 | Download : 9

Publication Date : 2019-03-15

Article Type : Research Paper

Abstract :Explaining the disparities in growth rates across both developing and developed countries is one of the vital questions in the theory of economic growth. As an answer to this question the term middle-income trap was introduced about a decade ago and it quickly became popular in politics, media and academics. The aim of the paper is to seek to what extent this term is capable to explain the growth performance of the Turkish economy. Following a brief discussion on middle-income trap, the paper focuses on the Turkish economic growth. It is concluded that the major problem of Turkey is persistent slow long-run growth rather than the growth slowdown following fast growth as suggested by the literature
Keywords : Growth Slowdown, Middle Income Trap, Turkey