The Middle-Income Trap in the Perspective of the Austrian Capital Theory
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Data de Publicação: | 2018 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Mises |
Texto Completo: | https://revistamises.org.br/misesjournal/article/view/961 |
Resumo: | This paper applies the Austrian capital theory to the problem why emerging economies fall into the middle-income trap and how they may escape. The analysis puts entrepreneurial action at the center with a focus on the subjectivist nature of capital and on the role of the entrepreneur as the creator of the capital structure based on expectations and his imagination. The central thesis says that when a developing country has come close to the lower bound of the income level of the industrialized countries in its catch-up process but does not open its economy to free markets and entrepreneurship, further economic progress will fail, and the country remains in the middle-income range. The paper identifies grand-scale malinvestments induced by government policies as the main culprit for a country to become stuck in the middle-income trap. The policy conclusion of the analysis is that the way out of the middle-income requires not more, but less intervention. Instead of more government spending, less spending is required and instead of promoting a few big companies, the country must open its markets to the full potential of entrepreneurial action. |
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The Middle-Income Trap in the Perspective of the Austrian Capital TheoryLa trampa de la renta media en la perspectiva de la Teoría Austríaca del CapitalA Armadilha da renda média na perspectiva da Teoria Austríaca do CapitalArmadilha de renda médiamercados emergenteseconomia austríacateoria do capitalempreendedorismopolítica de desenvolvimentocrescimento econômicoMiddle-income trapemerging marketsAustrian economicscapital theoryentrepreneurshipdevelopment policyconomic growthTrampa de renta mediamercados emergenteseconomía austriacateoría del capitalemprendimientopolítica de desarrollocrecimiento económicoThis paper applies the Austrian capital theory to the problem why emerging economies fall into the middle-income trap and how they may escape. The analysis puts entrepreneurial action at the center with a focus on the subjectivist nature of capital and on the role of the entrepreneur as the creator of the capital structure based on expectations and his imagination. The central thesis says that when a developing country has come close to the lower bound of the income level of the industrialized countries in its catch-up process but does not open its economy to free markets and entrepreneurship, further economic progress will fail, and the country remains in the middle-income range. The paper identifies grand-scale malinvestments induced by government policies as the main culprit for a country to become stuck in the middle-income trap. The policy conclusion of the analysis is that the way out of the middle-income requires not more, but less intervention. Instead of more government spending, less spending is required and instead of promoting a few big companies, the country must open its markets to the full potential of entrepreneurial action. RESUMEN Este artículo aplica la teoría austríaca del capital al problema sobre las razones en que las economías emergentes caen en la trampa de la renta media y qué se puede hacer para evitarla. Este análisis plantea la acción emprendedora en el centro, con foco en la naturaleza subjetiva del capital y en el papel del emprendedor como creador de la estructura de capital, basada en sus expectativas y en sus conocimientos. La tesis central dice que cuando un país en desarrollo se acerca al límite inferior del nivel de la renta de los países industrializados, pero no abre su economía, ni se vuelve más emprendedor, no habrá progreso económico y el país se mantendrá en la renta media. El estudio identifica las malas inversiones inducidas por políticas gubernamentales como el principal culpable por un país quedarse atrapado en la trampa de la renta media. Las cosas empeoran cuando el gobierno, con el objetivo de deshacerse de este problema, aplica estímulos monetarios y fiscales. Tales políticas expansivas prolongan y profundizan el estancamiento. De hecho, esas políticas son del mismo tipo de aquellas que, originalmente, empujaron al país hacia esa trampa. La conclusión política del análisis es que la salida de la renta media requiere menos intervención. En vez de más gastos del gobierno, menos gastos son necesarios y, en vez de promover algunas grandes empresas, el país necesita abrir sus mercados para potenciar la acción emprendedora. El gobierno debe deshacerse de las medidas expansionistas de política económica, pues ellas inducen y profundizan el desajuste de la estructura de capital del país.Esse artigo aplica a teoria austríaca do capital ao problema sobre as razões em que as economias emergentes caem na armadilha da renda média e o que pode ser feito para evitá-la. A análise coloca a ação empreendedora no centro, com foco na natureza subjetivista do capital e no papel do empreendedor como criador da estrutura de capital baseada em suas expectativas e em seus conhecimentos. A tese central diz que quando um país em desenvolvimento se aproxima do limite inferior ao nível de renda dos países industrializados em seu processo de recuperação e não abre a sua economia para livres mercados e empreendedorismos, mais o progresso econômico fracassará, e o país se manterá na faixa de renda média. O estudo identifica os maus investimentos em grande escala induzidos por políticas governamentais, como o principal culpado por um país ficar preso na armadilha da renda média. A conclusão política da análise é que a saída da renda média requer menos e não mais intervenção. Ao invés de mais gastos do governo, menos gastos são necessários e, em vez de promover algumas grandes empresas, o país precisa abrir seus mercados para potencializar a ação empreendedora.Instituto Mises Brasil2018-11-02info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://revistamises.org.br/misesjournal/article/view/96110.30800/mises.2018.v0.961MISES: Interdisciplinary Journal of Philosophy, Law and Economics; 2018: SPECIAL ISSUEMISES: Interdisciplinary Journal of Philosophy, Law and Economics; 2018: SPECIAL ISSUEMISES: Interdisciplinary Journal of Philosophy, Law and Economics; 2018: SPECIAL ISSUE2594-91872318-0811reponame:Misesinstname:Instituto Mises Brasilinstacron:IMBenghttps://revistamises.org.br/misesjournal/article/view/961/593Mueller, Antony Peterinfo:eu-repo/semantics/openAccess2019-06-08T02:31:03Zoai:ojs.emnuvens.com.br:article/961Revistahttps://revistamises.org.br/misesjournalPRIhttps://revistamises.org.br/misesjournal/oairevista@mises.org.br2594-91872318-0811opendoar:2019-06-08T02:31:03Mises - Instituto Mises Brasilfalse |
dc.title.none.fl_str_mv |
The Middle-Income Trap in the Perspective of the Austrian Capital Theory La trampa de la renta media en la perspectiva de la Teoría Austríaca del Capital A Armadilha da renda média na perspectiva da Teoria Austríaca do Capital |
title |
The Middle-Income Trap in the Perspective of the Austrian Capital Theory |
spellingShingle |
The Middle-Income Trap in the Perspective of the Austrian Capital Theory Mueller, Antony Peter Armadilha de renda média mercados emergentes economia austríaca teoria do capital empreendedorismo política de desenvolvimento crescimento econômico Middle-income trap emerging markets Austrian economics capital theory entrepreneurship development policy conomic growth Trampa de renta media mercados emergentes economía austriaca teoría del capital emprendimiento política de desarrollo crecimiento económico |
title_short |
The Middle-Income Trap in the Perspective of the Austrian Capital Theory |
title_full |
The Middle-Income Trap in the Perspective of the Austrian Capital Theory |
title_fullStr |
The Middle-Income Trap in the Perspective of the Austrian Capital Theory |
title_full_unstemmed |
The Middle-Income Trap in the Perspective of the Austrian Capital Theory |
title_sort |
The Middle-Income Trap in the Perspective of the Austrian Capital Theory |
author |
Mueller, Antony Peter |
author_facet |
Mueller, Antony Peter |
author_role |
author |
dc.contributor.author.fl_str_mv |
Mueller, Antony Peter |
dc.subject.por.fl_str_mv |
Armadilha de renda média mercados emergentes economia austríaca teoria do capital empreendedorismo política de desenvolvimento crescimento econômico Middle-income trap emerging markets Austrian economics capital theory entrepreneurship development policy conomic growth Trampa de renta media mercados emergentes economía austriaca teoría del capital emprendimiento política de desarrollo crecimiento económico |
topic |
Armadilha de renda média mercados emergentes economia austríaca teoria do capital empreendedorismo política de desenvolvimento crescimento econômico Middle-income trap emerging markets Austrian economics capital theory entrepreneurship development policy conomic growth Trampa de renta media mercados emergentes economía austriaca teoría del capital emprendimiento política de desarrollo crecimiento económico |
description |
This paper applies the Austrian capital theory to the problem why emerging economies fall into the middle-income trap and how they may escape. The analysis puts entrepreneurial action at the center with a focus on the subjectivist nature of capital and on the role of the entrepreneur as the creator of the capital structure based on expectations and his imagination. The central thesis says that when a developing country has come close to the lower bound of the income level of the industrialized countries in its catch-up process but does not open its economy to free markets and entrepreneurship, further economic progress will fail, and the country remains in the middle-income range. The paper identifies grand-scale malinvestments induced by government policies as the main culprit for a country to become stuck in the middle-income trap. The policy conclusion of the analysis is that the way out of the middle-income requires not more, but less intervention. Instead of more government spending, less spending is required and instead of promoting a few big companies, the country must open its markets to the full potential of entrepreneurial action. |
publishDate |
2018 |
dc.date.none.fl_str_mv |
2018-11-02 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://revistamises.org.br/misesjournal/article/view/961 10.30800/mises.2018.v0.961 |
url |
https://revistamises.org.br/misesjournal/article/view/961 |
identifier_str_mv |
10.30800/mises.2018.v0.961 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://revistamises.org.br/misesjournal/article/view/961/593 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Instituto Mises Brasil |
publisher.none.fl_str_mv |
Instituto Mises Brasil |
dc.source.none.fl_str_mv |
MISES: Interdisciplinary Journal of Philosophy, Law and Economics; 2018: SPECIAL ISSUE MISES: Interdisciplinary Journal of Philosophy, Law and Economics; 2018: SPECIAL ISSUE MISES: Interdisciplinary Journal of Philosophy, Law and Economics; 2018: SPECIAL ISSUE 2594-9187 2318-0811 reponame:Mises instname:Instituto Mises Brasil instacron:IMB |
instname_str |
Instituto Mises Brasil |
instacron_str |
IMB |
institution |
IMB |
reponame_str |
Mises |
collection |
Mises |
repository.name.fl_str_mv |
Mises - Instituto Mises Brasil |
repository.mail.fl_str_mv |
revista@mises.org.br |
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1798313181851942912 |