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1、TheMiddle-IncomeTrapfromaSchumpeterianPerspectiveThispaperprovidesanoutlineforviewingthemiddle-incometrapthroughthelensoftheSchumpeteriangrowthparadigm,whichplacesthenotionofcreativedestructionatthecenterofeconomicgrowth.Growthanddevelopmentcomefromstructuraltransf
2、ormation,definedastheinterplaybetweenchangesineconomicstructureandsupportinginstitutionsatdifferentstagesofdevelopment.Thepaperdiscusseshowfirms,competition,andinstitutionsaffectstructuraltransformation.AbouttheAsianDevelopmentBankADB’svisionisanAsiaandPacificregio
3、nfreeofpoverty.Itsmissionistohelpitsdevelopingmembercountriesreducepovertyandimprovethequalityoflifeoftheirpeople.Despitetheregion’smanysuccesses,TheMIDDle-INcOMeTrAPitremainshometoalargeshareoftheworld’spoor.ADBiscommittedtoreducingpovertythroughinclusiveeconomicg
4、rowth,environmentallysustainablegrowth,andregionalintegration.BasedinManila,ADBisownedby67members,including48fromtheregion.ItsmaininstrumentsforfrOMASchuMPeTerIANhelpingitsdevelopingmembercountriesarepolicydialogue,loans,equityinvestments,guarantees,grants,andtechn
5、icalassistance.PerSPecTIvePhilippeAghionandCagatayBircanNO.521adbeconomicsseptember2017workingpaperseriesAsiAnDevelopmentBAnk6ADBAvenue,MandaluyongCity1550MetroManila,Philippineswww.adb.orgCONTENTSFIGURESivABSTRACTvI.INTRODUCTION1II.GROWTHTHROUGHCREATIVEDESTRUCTION
6、1III.PRODUCTIVITYGROWTHANDPRODUCTMARKETCOMPETITION2IV.TRADELIBERALIZATIONANDGROWTH3V.THEMIDDLE-INCOMETRAPINTHESCHUMPETERIANGROWTHPARADIGM4VI.GROWTHANDFIRMDYNAMICS7VII.IMPLICATIONSFOREMERGINGASIA12VIII.CONCLUSIONSANDFUTUREWORK12REFERENCES15FIGURES1CompetitionandEnte
7、rpriseGrowth22Growth,Education,andDistancetotheFrontier53Investment-ledversusInnovation-ledGrowth64DistributionofProductivityintheUnitedStatesversusIndia9ABSTRACTWeprovideanoutlineforviewingthemiddle-incometrapthroughthelensoftheSchumpeteriangrowthparadigm,whichpla
8、cesthenotionofcreativedestructionatthecenterofeconomicgrowth.Economicgrowthanddevelopmentcomefromtheinterplaybetweenchangesineconomicstructureand
