THE MIDDLE-INCOME TRAP – A PROBLEM OF DEFINITION AND EMPIRICAL RESEARCH

Subject and purpose of work: Theoretical and empirical analysis of the middle-income trap. To test the validity to be able to fix a middle-income band to classify a country in the middle-income trap. Materials and methods: Theoretical and empirical studies on the middle-income trap have been used as material and the descriptive and explorative method of research has been used. Results: To fix a middle-income band was deemed to be unjustified because the middleincome band was found to change every year. The period of the middle-income trap was deemed justified and it was found that a potential based definition can be formed to create a distinction between trapped and non-trapped countries. Conclusions: To define the middle-income trap does not require a middle-income band to be fixed for a period as long as 42 years, but what is require is the period itself and the continuity of increasing the potential of a country to cross the middle-income trap.