The term Middle-Income Trap refers to countries which stagnate economically after reaching a certain level of per capita income on the basis of labour- and capital-intensive growth, and are struggling to transition towards more skill-intensive and technology-driven development. It has resonance for the increasing number of countries in Asia who have either languished in middle-income status for extended periods of time, or are worried about growth slow-downs.

This book sets outs the conceptual underpinnings of the Middle-Income Trap and explores the various ways it can be defined. It...