Towards Sustainable Development: Revisiting the Middle-Income Trap Hypothesis for the Southern Common Market Countries

Yilanci, Veli; Ursavaş, Uğur; Güven, Tamer

doi:10.35784/preko.3949

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Towards Sustainable Development: Revisiting the Middle-Income Trap Hypothesis for the Southern Common Market Countries

Autorzy

Yilanci Veli , Ursavaş Uğur , Güven Tamer

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DOI

10.35784/preko.3949

Warianty tytułu

W kierunku zrównoważonego rozwoju: powrót do hipotezy pułapki średniego dochodu dla południowych krajów wspólnego rynku

Języki publikacji

Abstrakty

One of the Sustainable Development Goals (SDGs) of the United Nations is to promote, sustained, inclusive, and sustainable economic growth. However, it is observed that many countries struggle to move up from the middle-income to high-income level, which refers to the middle-income trap (MIT). In this paper, we test the MIT hypothesis using a novel unit root test of Gómez-Zaldívar et al. (2013) across the Southern Common Market (MECOSUR) countries. To do so, we follow a different path from the existing literature and use a novel unit root testing strategy. We first test the significance of the trend term and then examine the unit root properties of the series by allowing multiple structural breaks according to the existence/non-existence of the trend term. Our results provide evidence of stationarity for Brazil, Colombia, Ecuador, and Peru, indicating that these four MERCOSUR countries are in MIT.

Jednym z Celów Zrównoważonego Rozwoju Organizacji Narodów Zjednoczonych jest promowanie trwałego, sprzyjającego włączeniu społecznemu i zrównoważonego. Wiele krajów ma jednak trudności z przejściem z poziomu średniego dochodu do poziomu wysokiego dochodu, co odnosi się do pułapki średniego dochodu (MIT). W tym artykule testujemy hipotezę MIT, za pomocą nowatorskiego testu pierwiastka jednostkowego Gómeza-Zaldívara i in. (2013), w krajach Południowego Wspólnego Rynku (MERCOSUR). Podążamy inną ścieżką wskazaną w istniejącej literaturze, stosując nowatorską strategię testowania pierwiastka jednostkowego. Najpierw testujemy znaczenie terminu trendu, a następnie badamy właściwości pierwiastka jednostkowego szeregu, dopuszczając wiele przerw strukturalnych w zależności od istnienia/nieistnienia terminu trendu. Nasze wyniki dostarczają dowodów na stacjonarności dla Brazylii, Kolumbii, Ekwadoru i Peru, wskazując, że te cztery kraje MERCOSUR są w MIT.

Słowa kluczowe

middle income trap sustainable development MERCOSUR

pułapka średniego dochodu zrównoważony rozwój MERCOSUR

Wydawca

Lublin University of Technology

Czasopismo

Problemy Ekorozwoju

Rocznik

2023

Tom

Vol. 18, nr 2

Strony

111--120

Opis fizyczny

Bibliogr. 61 poz., fig., tab.

Twórcy

autor

Yilanci Veli

Çanakkale Onsekiz Mart University, Faculty of Political Sciences, Çanakkale, Turkey (Turkey)

https://orcid.org/0000-0001-5738-690X

autor

Ursavaş Uğur

ugur.ursavas@beun.edu.tr

Zonguldak Bülent Ecevit University, Faculty of Economics and Administrative Sciences, Zonguldak, Turkey (Turkey)

https://orcid.org/0000-0003-1918-1457

autor

Güven Tamer

Utrecht University, Faculty of Humanities, Utrecht, Netherlands (Netherlands)

https://orcid.org/0000-0003-4329-0944

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