Eva Paus

About Eva Paus

Eva Paus is a professor of economics and the Carol Hoffmann Collins Director, McCulloch Center for Global Initiatives at Mount Holyoke College, Massachusetts, United States.
Author Archive | Eva Paus
Economics, Finance, Governance

Escaping the middle income trap: Innovate or perish

Escaping the middle income trap: Innovate or perish
The “middle income trap” captures the situation where a middle income country can no longer compete internationally in standardized, labor-intensive commodities because wages are relatively too high, and it can also not compete in higher value added activities on a broad enough scale because productivity is relatively too low. The result is slow growth, stagnant or falling wages, and a growing informal economy. Read more.