Faisal Basri, Gatot Arya Putra

Escaping the middle income trap in Indonesia: an analysis of risks, remedies and national characteristics

Since the early 1990s Indonesia has been a lower-middle income country that gained international recognition as an attractive emerging market for investment and trade.

However, in recent years Indonesia´s economic performance remained below those of East Asia’s most dynamic neighboring economies. Today, economists are concerned that Indonesia runs the risk of a middle-income trap. Economic inequality, structural deficits in the field of infrastructure, education as well as investment in advanced industrialization are among the main risk factors.

Basri, Faisal; Putra, Gatot Arya

Escaping the middle income trap in Indonesia

an analysis of risks, remedies and national characteristics
Jakarta, 2016

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