Growth sources become more difficult when the economy of the countries moves closer to middle-income groups from low-income groups. While technology has been advancing, capital investments, reached by the labor migration from the countryside (agriculture) to the city are losing their importance. Profitability based on low-cost labor starts to lose its speed. Thus, the attractiveness of the new investments decreases while the importance of productivity increases in economic growth. Increased productivity can only be possible with education, Research, and Development (R&D) activities and institutional reforms. Turkey often ranks in the last places among OECD (Organisation for Economic Co-operation and Development) countries when it comes to criteria such as R&D investments, high technology products in the manufacturing industry exportation, per capita income (PCI) and increase of education expenses. Especially in recent years, per capita income decreases, and economic contractions are seen in Turkey. For many years, Turkey takes place in the high-middle income group according to per capita classification of the World Bank. Within the context of national income per capita of the countries in the middle-income group, the inability to exceed this threshold and get to the group of high-income countries is called the Middle-Income Trap. The purpose of this study is to argue whether Turkey is in the Middle-Income Trap or not. In this context, with the help of selected indicators, a comparison between OECD countries have been made. Based on economic data, it is seen unlikely for Turkey to get to the group of high-income countries, in other words, get out of the Middle-Income Trap in the near future.
Growth sources become more difficult when the economy of the countries moves closer to middle-income groups from low-income groups. While technology has been advancing, capital investments reached by the labor migration from the countryside (agriculture) to the city are losing their importance. Profitability based on low-cost labor starts to lose its speed. Thus, the attractiveness of the new investments decreases while the importance of productivity increases in economic growth. Increased productivity can only be possible with education, research, and development (R&D) activities and institutional reforms. Turkey often ranks in the last places among OECD (Organisation for Economic Co-operation and Development) countries when it comes to criteria such as R&D investments, high-tech products in the manufacturing industry exportation, per capita income (PCI) and increase of education expenses. Especially in recent years, per capita income decreases, and economic contractions are seen in Turkey. For many years, Turkey takes place in the high-middle income group according to the per capita classification of the World Bank. Within the context of national income per capita of the countries in the middle-income group, the inability to exceed this threshold and get to the group of high-income countries is called the middle-income trap. The purpose of this study is to argue whether Turkey is in the Middle-Income Trap or not. In this context, with the help of selected indicators, a comparison between OECD countries have been made. Based on economic data, it is seen unlikely for Turkey to get to the group of high-income countries, in other words, get out of the Middle-Income Trap in the near future.
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