MIDDLE INCOME TRAP AND EXIT RECOMMENDATIONS FROM THE MIDDLE INCOME TRAP: THE CASE OF TURKEY

Abstract

The Middle Income Trap has been one of the most debated issues in economic literature in recent years. The Middle Income Trap (MIT) is widely studied, although it is still a new issue when it is considered within the context of economic growth and development. The situation in which the countries which have difficulty in raising the per capita national income level above a certain level and who are stuck at this income level is caught is called the middle income trap. Especially in recent years, it is known that many developing countries have difficulty in increasing the income level to developed countries. One of the countries are forced to exit the middle income trap, in this context it is also Turkey. Middle income trap suggestions from the location of the output in terms of Turkey's economy and middle-income trap are the subject of this study.

That it is determined to be in the middle-income trap to Turkey to escape from this income group; measures such as increasing national saving rates, increasing the share of R & D investments in GDP and innovation capacity, increasing investments in education and increasing women's labor force participation rates and economic efficiency. Turkey also create new spaces created in the services sector, increase the share of value-added GDP and university-based technology with state technologic cooperation will be necessary.