Abstract
China has entered the ranks of middle-income countries, however, the problem of Middle Income Trap that has plagued many developing countries is also arising. If there are no effective institutional change and development pattern transformation, China’s economy will eventually become stagnant and fall into the Middle Income Trap due to the lack of impetus for economic growth. This paper, based on the analysis of the experiences and lessons of world economies that have successful bypassed or fallen into the Middle Income Trap from dual dimensions of institutional design and development pattern, argues that China will over-leap the Middle Income Trap and enter the ranks of high-income countries only by carrying out institutional design to generate a new development driving force and push forward development transformation to forge a new development path so as to establish a country with sustainable economic development, fair and harmonious social development and advanced politics and democracy.
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Notes
- 1.
Chen and Chen (2010).
- 2.
Zheng (2011).
- 3.
Li (2008).
- 4.
Liu (2011).
- 5.
Li (2012).
- 6.
According to 2012 Statistical Communique on National Economic and Social Development issued by National Bureau of Statistics on February 22, 2013, China’s GDP was 519.322 billion yuan in 2012 and at the end of that year, the total population of China’s mainland was 1354.04 million, which means that China’s per capita GDP in 2012 was 38,354 yuan. As of the end of 2012, the middle exchange rate of RMB against US dollar was 6.2855, which means that China’s per capita GDP in 2012 reached 6100 US dollars.
- 7.
Zhang (2010).
- 8.
Hu (2012).
- 9.
National Development Bank of China and Peking University Joint Research Team, International Economic System Transformation: International Conditions for the Transformation of China’s Development Pattern.
- 10.
“Five lows” means “low cost, low technology, low price, low-profit, low-end market”; “four highs” means “high energy consumption, high material consumption, high emission and high pollution”.
- 11.
Li (2013).
- 12.
Li (2012).
- 13.
Ma and Liu (2011).
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Tian, H. (2019). Middle Income Trap from the Perspective of Institutional Design and Development Pattern. In: Li, Y., Cheng, Z. (eds) China’s Reform to Overleap the Middle-Income Trap. Springer, Singapore. https://doi.org/10.1007/978-981-13-9222-1_4
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DOI: https://doi.org/10.1007/978-981-13-9222-1_4
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