Question

What is the middle-income trap? Why have so many countries fallen into the trap?

Answer 1

When there is situation like when a country get stuck at an income level after attaining certain income it is called middle income trap. Countries which stuck at an income and are not able to move at higher level of income is called middle income trap

Many countries fall under this trap this is because instead of going steadily or slowing to the upper level theri GDP Per capital keeping on fluctuating up and down due to which they are caught in Middletown income trap and as a result they are unable to face competition with low income and low wages in manufacturing bof exports