The Middle-Income Trap from a Schumpeterian Perspective

Philippe Aghion (p.aghion@lse.ac.uk) and Çağatay Bircan
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Philippe Aghion: London School of Economics

No 521, ADB Economics Working Paper Series from Asian Development Bank

Abstract: We provide an outline for viewing the middle-income trap through the lens of the Schumpeterian growth paradigm, which places the notion of creative destruction at the center of economic growth. Economic growth and development come from the interplay between changes in economic structure and supporting institutions at different stages of development, i.e., structural transformation. We present a view of the process of economic development that takes the microlevel growth of firms and their competitive interaction as its building blocks. We discuss how institutional factors affect the evolution of these building blocks in understanding growth outcomes at different stages of development.

Keywords: competition; creative destruction; middle-income trap; Schumpeterian growth (search for similar items in EconPapers)
JEL-codes: O10 O11 O30 O40 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2017-09-17
New Economics Papers: this item is included in nep-gro and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0521

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