Middle Income Trap: An Empirical Analysis on Turkey

The concept of middle income trap, related to the level of income of the countries, refers to the fact that countries get stuck at the same income level for a certain period. It has emerged as an important concept as the number of middle-income countries represented by three-digit numbers in the 1960s has not been able to raise the status of a high-income country. In this study, according to the Robertson and Ye (2013)’s middle-income trap proposal we examine whether Turkey is in the middle income. For Turkey In this study, the evaluation was made of the middle-income trap, Carrion-i-Silvestre et al. (2009) used the multi-structural unit root test. According to the applied unit root test result, Turkey is not a country in the middle-income trap