Middle Income Trap from the Perspective of Institutional Design and Development Pattern
China has entered the ranks of middle-income countries, however, the problem of Middle Income Trap that has plagued many developing countries is also arising. If there are no effective institutional change and development pattern transformation, China’s economy will eventually become stagnant and fall into the Middle Income Trap due to the lack of impetus for economic growth. This paper, based on the analysis of the experiences and lessons of world economies that have successful bypassed or fallen into the Middle Income Trap from dual dimensions of institutional design and development pattern, argues that China will over-leap the Middle Income Trap and enter the ranks of high-income countries only by carrying out institutional design to generate a new development driving force and push forward development transformation to forge a new development path so as to establish a country with sustainable economic development, fair and harmonious social development and advanced politics and democracy.
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