Deep Economic Integration and State Capacity: A Mechanism for Avoiding the Middle-Income Trap?
Bruszt, László; Campos, Nauro F. | June 2018
Exiting the middle-income trap requires costly improvements in state capacity. Can deep economic integration increase state capacity and, if so, how? This paper provides a conceptual framework, new measurement, and evidence. Focusing on a panel of European Union membership candidate countries, this paper documents the large variation in the evolution of state capacities and empirically identify key links and implementation sequences. The main result is the centrality of an intricate relationship between bureaucratic independence and judiciary capacity. Change in these two is a precondition for increasing internal and external competitions, which are key factors for successfully escaping the middle-income trap.
CitationBruszt, László; Campos, Nauro F.. 2018. Deep Economic Integration and State Capacity: A Mechanism for Avoiding the Middle-Income Trap?. © Asian Development Bank. http://hdl.handle.net/11540/8429. License: CC BY 3.0 IGO.
Regional Economic Development
Asian Development Bank
Regional Economic Integration
Economies in transition
Gross domestic product
Economic development projects
Success in business
Communication in economic development
Restraint of trade
International economic integration
East-West tradeShow allCollapse