The Political Economy of the Middle Income Trap: The Challenges of Advancing Innovation Capabilities in Latin America, Asia and Beyond. Issue 4 (2nd April 2020)

• Record Type: Journal Article
• Authors: Kang, Nahee; Paus, Eva
• Is Part Of: Journal of development studies. Volume 56:Issue 4(2020)
• Page Start: 651
• Page End: 656
• Publication Date: 2020-04-02
• Subjects: Economic development -- Periodicals; Economic history -- 1945- -- Periodicals; Developing countries -- Economic conditions -- Periodicals; Développement économique -- Périodiques; Histoire économique -- 1945- -- Périodiques; Pays en voie de développement -- Conditions économiques -- Périodiques; 338.91
• DOI: 10.1080/00220388.2019.1595601
• Languages: English
• ISSNs: 0022-0388

Abstract

Abstract: Building on the middle-income trap literature where contexts of time and location matter, the articles in this special section adopt a 'political economy of development' approach to the problem of the middle-income trap. The papers employ different analytical approaches and have different entry points into unpacking the complex economic, social, and technical processes that advance productive capabilities. But they share a common set of assumptions undergirding a political economy approach and come to a common understanding that advances the middle-income trap discussion: (1) the development of domestic productive capabilities is critical for upgrading and developing broad-based innovation that may translate into higher productivity growth; (2) the interaction of international with domestic factors changes over time and may exacerbate domestic innovation challenges; and (3) the nature of the inter-workings between the government and actors in the private sector is crucial for understanding the advancement of innovation capabilities or lack thereof. All the papers point to the importance of a systemic and long-term approach to building productive capabilities and the need for strong state action to advance these capabilities.