The Middle-Income Trap 2.0: The Increasing Role of Human Capital in the Age of Automation and Implications for Developing Asia

Arbeitspapier

We modify the concept of the middle-income trap (MIT) against the background of the Fourth Industrial Revolution and the (future) challenges of automation (creating the concept of the "MIT 2.0") and discuss the implications for developing Asia. In particular, we analyze the impacts of automation, artificial intelligence, and digitalization on the growth drivers of emerging market economies and the MIT mechanism. Our findings suggest that improving human capital accumulation, particularly the upgrading of skills needed with the rapid advance of automation, will be key success factors for overcoming the MIT 2.0.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CEAMeS Discussion Paper ; No. 15/2018

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Economic Development: General ; Macroeconomic Analyses of Economic Development ; Economic Development: Human Resources; Human Development; Income Distribution; Migration ; Technological Change: Choices and Consequences; Diffusion Processes ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence ; Economywide Country Studies: Asia including Middle East
• Subject: automation ; human capital ; middle-income trap ; developing Asia ; economic development ; economic growth ; employment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Glawe, Linda ; Wagner, Helmut
• Event: Veröffentlichung
• (who): University of Hagen, Center for East Asia Macro-economic Studies (CEAMeS)
• (where): Hagen
• (when): 2020

Further information

• DOI: doi:10.18445/20190124-114606-0
• Handle: http://hdl.handle.net/10419/215657
• URN: urn:nbn:de:hbz:708-dh9608
• Last update: 10.03.2025, 11:44 AM CET