Income Traps for Different Income Groups: An Empirical Investigation

Akkay R. C., Altayligil Y. B.

Efil Journal of Economic Research, cilt.5, sa.3, ss.30-51, 2022 (Hakemli Dergi)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 5 Sayı: 3
  • Basım Tarihi: 2022
  • Dergi Adı: Efil Journal of Economic Research
  • Derginin Tarandığı İndeksler: EBSCO Education Source, EBSCO Legal Collection
  • Sayfa Sayıları: ss.30-51
  • İstanbul Üniversitesi Adresli: Hayır

Özet

This study investigates the existence of income traps for 42 countries with different income levels. These income traps were investigated by employing the Augmented Dickey-Fuller, Zivot-Andrews with one break, and Lee-Strazicich with two breaks test procedures for the 1987-2019 period. The empirical findings reveal the existence of income traps at lower-middle, upper-middle, and lower-high-income levels. The study points out the possibility of a new income trap for countries that have just passed the income threshold that separates upper-middle and high-income countries.