Overcoming the "middle-income trap": Chile case study

Main Article Content

Santiago Galeano Hernandez
Pablo Galeano Hernandez



The following article looks into the concept of the middle-income trap. First it focuses in Latin America as the region is home to several cases of said phenomenon and demonstrates the different struggles various nations go through to overcome it. It also analyses what other regions, like Asia Pacific, have done to deal with middle income. Afterwards it concentrates in Chile to analyze how it has dealt with the middle-income trap. Concludes that while Chile has gone a long way to progress and reach very high levels of income, there are still several aspects in their economy must change in order to fully escape the problems that coincide with the aforementioned phenomenon.


Download data is not yet available.
Abstract 1312 | PDF Downloads 798


Agénor P. -R., Canuto, O., & Jelenic, M. (2012). Avoiding Middle-Income Growth Traps. EconomicPremise, 7.

Agénor, P. -R. (2015), Caught in the Middle? The Economics of Middle-Income Traps, FERDI Working Paper, p. 142.

Bárcena, A., & Byanyima, W. (2016, January 25). Latin America is the world’s most unequal region. Here’s how to fix it. Available at: https://www.cepal.org/en/articles/2016-latin-america-worlds-most-unequal-region-heres-how-fix-it.

Büchi, H. (2006). How Chile Successfully Transformed Its Economy. The Heritage Foundation.No. 1958. Abailable at: https://www.heritage.org/international- economies/report/how-chile-successfully-transformed-its-economy.

Casas-Zamora, K. y Carter M. (2017). Beyond the Scandals. The Changing Context of Corruption inLatin America. (Rule of Law Report, February), The Dialogue. Leadership for the Americas. Inter-American Dialogue.

Chang, H. -J. (2002). Kicking Away the Ladder: Development Strategy in Historical Perspective (1st edition). London: Anthem Press.

Chile: In-depth PESTLE insights. (2017). 1-80. Available at: http://ezproxy.eafit.edu.co/login? url=http://search.ebscohost.com/login.aspx?direct=tru e&db=bth&AN=127782344&lang=es&site=ehost-live.

Chile Country Risk Report. (2018). (2), 1-53. Available at: http://ezproxy.eafit.edu.co/login?url=http://search.ebscohost.com/login.aspx?direct=tru e&db=bth&AN=127611662&lang=es&site=ehost-live

CNIC (2010). Agenda de innovación y competitividad 2010-2020. Santiago. Available at: http://www.subdere.gov.cl/sites/default/files/documentos/articles-80011 _ archivo _ fuente.pdf.•Dirección General de Relaciones Económicas Internacionales. (2009). Chile 10 años de negociacionescomerciales. B&B Impresores. Santiago.

Doner, R. F., & Schneider, B. R. (2016). The Middle-Income Trap: More Politics than Economics. World Politics, 68(4), p. 608–644.

Dingemans, A. (2016). Trying to Stay ahead of the Curve in Chile's Economic Development: Exploring a Way Out of the Middle-Income Trap through Pragmatic Export Development. DevelopmentPolicy Review, 34(5), 643-669. Available at: http://ezproxy.eafit.edu.co/login? url=http://search.ebscohost.com/login.aspx?direct=tru e&db=eoh&AN=1601468&lang=es&site=ehost-live.

Ferreira, F. H. G., Messina, J., Rigolini, J., López-Calva, L.-F., Lugo, M. A., & Vakis, R. (2012). EconomicMobility and the Rise of the Latin American Middle Class. The World Bank. https://doi.org/10.1596/978-0-8213-9634-6.

Gurría, A. (2017, January 18). Private Session: Prioritizing Policy for Inclusive Productivity. TheMiddle Income Trap in Latin America: ongoing OECD-World Economic Forum.

OEC Database (2018). Available at https://atlas.media.mit.edu/en/profile/country/chl/