It is by now well-established fact that human capital accumulation is decisive for explaining income differences across and within countries. However, while there is already a significant body of literature focusing on the analysis of income convergence, research on the dynamics of the...

This paper develops a stylized multi-sector growth model of China's economy. We choose a neoclassical modeling approach and focus on the reform process under Deng Xiaoping as China's main growth driver since 1978. Following the literature, we distinguish between three major reform periods,...

In our paper, 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”). In particular, we analyze the impacts of automation, artificial intelligence, and...

There is a significant body of literature arguing that institutional quality is the key for long run economic growth and development. While the majority of these studies are based on cross-country growth regression, in our paper, we focus on the institution-economic growth nexus within a...

The European integration process started with the aim of reducing the differences in income and/or living standards between the participating countries over time. To achieve this, a certain alignment of institutions and structures was seen as a necessary precondition. While the goal of this...

Over the last decade, a growing body of literature dealing with the phenomenon of the "middle-income trap" (MIT) has emerged. The term MIT usually refers to countries that have experienced rapid growth and thus reached the status of a middle-income country (MIC) in a very short period of time,...

Over the last decade, a growing body of literature dealing with the phenomenon of the “middle-income trap” (MIT) has emerged. The term MIT usually refers to countries that have experienced rapid growth and thus reached the status of a middle-income country (MIC) in a considerably short...