About Eva Paus
Eva Paus is a professor of economics and the Carol Hoffmann Collins Director, McCulloch Center for Global Initiatives at Mount Holyoke College, Massachusetts, United States.Escaping the middle income trap: Innovate or perish
The “middle income trap” captures the situation where a middle income country can no longer compete internationally in standardized, labor-intensive commodities because wages are relatively too high, and it can also not compete in higher value added activities on a broad enough scale because productivity is relatively too low. The result is slow growth, stagnant or falling wages, and a growing informal economy.
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