Middle Income Trap and the Case of Turkey

Middle income trap (MIT) is a major bottleneck in particular faced by the middle-income countries as well as a new topic in literature. After the 1960s, the importance of the subject is increased that few countries located in the middle income group have reached high-income countries category for countries. In this study, the convergence and ARDL analysis was performed using annual data of Turkey for the period 1971-2012. The results show that Turkey is converge to high-income countries; higher education enrollment and domestic savings rates have a positive and meaningful effect on per capita income. Ultimately, the risk of deindustrialization should be removed to get rid of the MIT in Turkey and the education system should be focused on innovation and technology.