Full – Perspective Analysis of Medium Income Trap

Abstract

The backward economies can’t enter into the high-income group after stepping on the middle-income stage successfully. Based on multidimensional perspective of economics, this paper will analyze the reasons of "middle-income trap". As the adverse condition of international environment and domestic weakness, the development process of backward economies when they enter into the "middle income trap" is generally affected by the global economic crisis, while it is difficult to resist the global economic crisis for the middle income stage because its vulnerability. Turning to another views, the lower domestic savings rate, the shortage of high-end production factors, the low degree of market standard, the low-end embedded international production system will hinder the middle-income economies to enter into high-income group. The analysis of this paper in details will provide reference for China and provide theoretical support and policy guidance for its rapid entry into high - income economies.