Middle-income trap is not unbreakable

The term middle-income trap, first used by the World Bank in 2006, refers to a stage - generally, slower growth - an economy reaches after becoming a middle-income society. The middle-income trap, as such, reflects the inadaptability of the industrial development model.

Globalization has allowed a country's industrialization to be weighed in terms of internal industrialization and external industrialization. And once the negative factors impede the development of internal industrialization, external industrialization, more or less, prevails.

Developed countries have almost always exported capital through direct investment, capital outflows or cross-border cooperation to check the decline in profits because of increasing domestic wages. Such kind of external industrialization has helped accelerate many developing countries' domestic industrialization.