Medium Income Trap: Theory, Experience And China 's Countermeasures

The word Middle-Income Trap first appeared in a titled “The East Asian Renaissance: Ideas About Economic Growth” issued by the world bank in 2007.So-called Middle-Income Trap, the main meaning is after the emerging market country into the middle-income stage, because of the past economic development model or elements have been unable to meet the needs of the new phase of economic growth. If the country cannot adjust its original model of economic growth, the economic growth momentum would insufficient for a long time. This also leads the country’s economic growth likely to be stagnant or even retrogress and the country’s per capita income may wander for a long time in the middle-income stage.Into the 21 st century, China takes full advantage of the opportunity of international development. In the face of complicated international political and economic situation, China push the deepening reform continuously and it gradually become to the irreplaceable part in the process of world economic development.Especially after the financial crisis, China has launched a forward-looking policy, which not only make them smoothly through the economic crisis, but also make them climb on a new level of economic development and establishment. Throughout China’s 40 years reform and opening up process, the rapid process of its economic development, it also the process of the benefit changing and the contradiction accumulating. Since our economy has been into the “new normal”, economic growth has faced increasingly complex situation at home and abroad. And some characteristics of the Middle Income Trap has begun a preliminary revealed. Such as the gap between rich and poor is to large, slow urbanization, adjusting industrial structure of “two high and one left” is very difficult. This series problems’ appear will produce a great adverse effect to the sustained and healthy development of our economy. China’s economy can be keep sustained and stable growth or not is not only related ourselves but also related to the whole world. So the discussion of the middle income trap and whether China will fall into the trap has become a hot spot in recent years.This paper argues that how to draw lessons from Japan and South Korea or other countries successfully across the middle-income stage into the high-income countries and Latin American countries fell into the middle-income trap and the lessons of long-term stagnation and even backwards, adjust our economic structure, coordinating the relationship between the transformation of the mode of economic growth and income distribution, for the Chinese avoid falling into the middle-income trap has great significance.So this paper will comb in the existing literature about China how to avoid falling into the middle-income trap, to successfully cross the experience and fall into the trap of trap countries lesson review, analysis of the main problems in the current China and its reasons, put forward some proposals of China across the middle-income trap.