The International Comparison Of Avoiding"middle-income Trap" And Its Revelation To China

In2006, the world bank in the east Asia economic development report putsforward the concept of "middle-income trap", and points out that middle-incomecountries it is difficult to enter the ranks of higher income countries, the economy isoften at a standstill, countries in a salary cannot compete with low-income countries,science and technology can’t compete with high income countries dilemma, causedthe attention of many scholars. By the world bank published standards, per capitaGDP is far more than$3865in income countries such as China has been listed in thehigh school, and began to the high income countries. However, China’s recenteconomic growth has slowed, long-term support China’s rapid economic growth ofthe population dividend, bonus dividend and globalization advantages are also fade,"middle-income trap" already exists on the path of economic development in China,whether China can successfully avoid this trap, for the sustainable development ofChina’s economy and social stability has very important significance.This article based on the concept, feature and cause of middle-income trap,compared two groups of countries in the economic development stage, industrialstructure, education level, income distribution, and the similarities and differencesbetween foreign trade and so on by using China-Korea and China-Brazil respectively,and these two countries experience set an example for economic development ofChina. It provide policy recommendations for China to avoid middle-income trap bycombining actual economic development situation of China. First of all, it needs tostrengthen research and development of science and technology, strengthentechnological innovation, promote the upgrading of industrial structure, expand theservice industry as a share of GDP; second of all, it needs to attach importance toeducation development, guarantee the fairness of education, strengthen the qualityeducation, actively encourage social forces to invest in running schools, and cultivateexcellent human resources; And then, it needs to perfect the income distributionsystem, adjust the pattern of national income distribution, try best to narrow the gapbetween rich and poor, promote social mobility, break the urban and rural dual system.At the end, it needs to develop international trade, implementation of protectiveexport promotion strategy, develop regional trade group, and then create advantagefor our country to avoid middle-income trap.