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https://hdl.handle.net/1959.11/62348
Title: | Human capital and the middle-income trap revisited | Contributor(s): | Chambra Mundachalil, Jayadevan (creator); Hoang, Nam (supervisor) ; Yarram, Subba Reddy (supervisor) | Publication Date: | 2022-10-11 | Handle Link: | https://hdl.handle.net/1959.11/62348 | Related Research Outputs: | https://hdl.handle.net/1959.11/61698 | Abstract/Context: | Middle-income trap refers to the economic growth strategies that transition low-income countries into middle-income ones but fail to transition the middle-income countries into high-income countries. We observe the existence of a middle-income trap for upper-middle- and lower middle-income countries. We examine the reasons for the middle-income trap using the Bayesian model averaging (BMA) and generalized method of moments (GMM). We also explore the transformation of middle-income economies into high-income economies using logistic, probit and Limited Information Maximum Likelihood (LIML) regression analyses. Random forest analysis is also used to check the robustness of the findings. BMA analysis shows that education plays an enabling role in high-income countries in determining economic growth, whereas the full poten tial of education is not fully utilized in middle-income countries. GMM estimations show that the education coefficient is positive and significant for high-income and middle-income countries. This implies that education plays a decisive positive role in achieving economic growth and gives a path to escape from the middle-income trap. However, the education coefficient for middle-income countries is approximately half that of high-income countries. Therefore, the findings of this study call for additional investment and focused strategies relating to human capital endowments | Publication Type: | Dataset | Fields of Research (FoR) 2020: | 380112 Macroeconomics (incl. monetary and fiscal theory) | Socio-Economic Objective (SEO) 2020: | 150299 Macroeconomics not elsewhere classified | Keywords: | Growth GDP human capital investment |
HERDC Category Description: | X Dataset | Dataset Managed By: | Jayadevan, CM | Dataset Stored at: | University of New England | Primary Contact Details: | Jayadevan, CM - jdevcm@outlook.com | Dataset Custodian Details: | Jayadevan, CM - jdevcm@outlook.com |
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Appears in Collections: | Dataset UNE Business School |
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