Deep Economic Integration and State Capacity: A Mechanism for Avoiding the Middle-Income Trap?
Bruszt, László; Campos, Nauro F. | June 2018
Abstract
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.
Citation
Bruszt, 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.ISSN
2313-6537 (print)
2313-6545 (electronic)
Keywords
Development Economics
Regional Economic Development
Economic Impact
Asian Development Bank
Development
Economic Boom
Regional Economic Integration
Good Governance
Governance Approach
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Economic planning
Economic structure
Growth policy
Trade relations
Trade policy
Trade policy
Economic development
Economies in transition
International economy
Border integration
Economic integration
Gross domestic product
Trade policy
Institutional Framework
Public Administration
Business Ethics
Regional economics
Economic forecasting
Economic development projects
Success in business
Business
Free trade
Business
Economics
Communication in economic development
Restraint of trade
International economic integration
Trade blocs
East-West trade
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