Study On Middle Income Trap

In recent years, the rapid economic development of East Asia, causing great concern of the world’sresearch institutions and scholars at home and abroad, while the emerging economies in Asia, includingChina, Indonesia, Malaysia, the Philippines and Thailand, after30years of rapid development, withLatin American countries at roughly the same level of development. In accordance with the standards ofthe World Bank, in2010, China’s per capita GDP has reached$4,400, into the upper middle-incomecountries in the world. The same time, China is facing a slowdown in economic growth, per capitaincome is difficult to improve the "middle income trap" test. China as the world’s big country, thesmooth implementation into the ranks of high-income countries become a policy issues whichconcerned by international research institutions, academia and the financial media.Through comparative research method, in Latin America and South Korea’s economic development,industrial policy and industrial structure adjustment, R&D capability and the accumulation of humancapital and income distribution fair degree of contrast, conclusion is: economic policies anddevelopment strategies affect a country’s long-term economic growth, the income gap is too large, havea negative impact on economic growth, human capital accumulates inadequacy lead to the failure ofeconomic transformation, industrial structure upgrade is the smooth transition of economic growth inthe most direct factor.When the demographic dividend, institutional changes late-development advantage, investmentdividends, dividends disappear in globalization, what is China’s economic growth power? China is nowfacing the problem of income distribution, the imbalance of industrial structure, institutional barriersand society four major challenges.By analysis, China is very different from other countries; China has a good foundation for thedevelopment, across the middle-income trap favorable conditions in a stage of rapid development ofindustrialization and urbanization, a broad industrial transfer space and a huge domestic consumermarket. China can be enhanced to improve the industrial system, upgrade the industrial structure; greatimportance to narrow the income gap, to ensure social stability; continue to promote the rural landreform, to release agricultural productivity; continue to promote the reform of the system, the role of thegovernment system to protect the role of a smooth transition to medium-trap or shorten the mediumincome trap.