Analysis on the Risk of Turkey Falling into the "Middle Income Trap"

Abstract

In 2007 Turkey was classified as an "upper-middle-income country" by the World Bank, but it soon became Mired in bottlenecks. The main reasons for Turkey to fall into this trap are: domestic and foreign political instability, industrial structure imbalance, insufficient innovation-driven capacity, weak financial system, etc., which hinder Turkey's productivity improvement and economic growth, but also hinder social development. For developing countries, on the one hand, they should properly handle their internal diplomatic relations and create a stable environment for their own economic development. On the other hand, we should vigorously develop human capital, accelerate scientific and technological innovation, and at the same time control the freedom of financial markets and control the scale of foreign debt.