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Technology Adoption and the Middle-Income Trap

Authors: Arezki, Rabah; Fan, Rachel Yuting; Nguyen, Ha;

Technology Adoption and the Middle-Income Trap

Abstract

This paper documents the existence of a "middle-income trap" for the Middle East and North Africa region. It argues that the economic woes of the Middle East and North Africa offer new insights into the debate on the trap which has thus far focused on the East Asia and Pacific region. The results are two-folds. First, non-parametric regressions show that the average rate of economic growth in the Middle East and North Africa has not only been significantly lower than that in the East Asia and Pacific region, but it has also tended to drop at an earlier level of income. Second, econometric results point to Middle East and North Africa having experienced a relatively slow pace of technology adoption in general-purpose technologies. The paper concludes that barriers to the adoption of general-purpose technologies related to the lack of contestability in key sectors could constitute an important channel of transmission for the middle-income trap.

Country
United States
Related Organizations
Keywords

330, FIRM DYNAMIC, ECONOMIC GROWTH, COMPETITION POLICY, TECHNOLOGY ADOPTION, MIDDLE-INCOME TRAP, TOTAL FACTOR PRODUCTIVITY, BARRIER TO ENTRY, TECHNOLOGY INNOVATION, EMERGING MARKET ECONOMIES

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
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