The Research On The Path Of China Avoid The Middle-income Trap

Middle-income trap is a description of slow development and continues to falter in Latin America. It refer to the specific content when a country's per capita income reaches a moderate level (GDP per capita around ? 4,000), because of the slowly transformation of economic development mode, wandering in the middle-income range in the long run and can not stepping into high-income countries, the economy lack motivation to keep on sustained economic growth, as a result economic growth fell back or stop growing. In this article, I think middle-income trap is industrial structure trap. In the middle-income stage, it is the problems of industrial structure that led to the middle-income trap.In this article, I will compare the paths of Japan, South Korea and Brazil, Argentina that avoid middle-income trap. After that I found that Japan and South Korea avoid the middle income trap successfully through the industrial structure upgrading and rationalization of industrial structure while Brazil and South Korea step into a middle-income trap because Brazil and Argentina did not pick up the path of industrial structure upgrading and industrial structure rationalization. On the basis of this conclusion, the paper first analyzes the process of Chinese industrial structure upgrading and rationalization of industrial structure, then I will compare industrial structure between China and typical countries. After that I find the process of industrial structure upgrading and rationalization of industrial structure is relatively slow, so there is a threat that China will step into middle-income trap. Finally, I will find out the path to avoid the middle income trap from the industrial structure Upgrading and industrial structure rationalization.This paper argues that the level of technological development is the cause that why Chinese industrial structure upgrade slowly and capital flow systematic factors is the cause of China's industrial structure rationalization. In this paper,1 will pick up the path of promoting the level of technological development and the financial system to upgrade industrial structure.Also I will pick up the path from the view of agricultural system and government-led economic to promote industrial structure rationalization..