Linda Glawe

• Dr. rer. pol.
• Tenure Track Professor at University of Rostock

This paper investigates nonlinearities in the inflation-inequality relationship using a dynamic threshold panel data model and data for 101 countries over the period 1985–2020. We find that inflation rates exceeding 6% are associated with higher income inequality whereas below this threshold, the correlation remains insignificant. From a monetary p...

This paper investigates the human capital convergence dynamics within China over the period 1985–2018 using a nonlinear dynamic factor model. Our results indicate that there exist multiple human capital clubs, and the heterogeneity between those clusters is increasing over time. Moreover, we detect a core–periphery division with several provinces l...

While institutions are said to be poor in China in cross-country comparison, recent research indicates that at the provincial level, institutional quality plays in fact an important role for the economic success of a province, municipality, or autonomous region in China. Our paper aims to add further arguments to this discussion by focusing on the...

Convergence in human capital is a key precondition to achieve income convergence in the European Union; however, so far research on this topic has nearly been absent. Our paper contributes to the literature by investigating the human capital convergence dynamics within the EU over the period 1990–2016 using a nonlinear dynamic factor model. While w...

Recent research shows that schooling is not the same as learning. Still, the mean school years are the standard metric of education-based human capital. We propose a new database on the learning-adjusted years of schooling (LAYS) over the period 1995–2015 by using the World Bank (2018) methodology. The LAYS combine measures of school quantity and s...

In the 1960s, about two decades after Japan’s economic takeoff, also South Korea underwent a period of extended growth and managed to rise to the ranks of high-income countries. This Chapter sheds light on the factors that enabled the “Miracle on the Han River”. It analyzes the South Korean export promotion strategy as well as the subsequent HCI dr...

Japan was the first of the East Asian countries that succeeded in joining the club of advanced economies, and the Japanese development strategy has provided important lessons for other East Asian countries. This Chapter traces the history of Japan’s development from the Middle Ages to modern times. In this way, it aims to uncover the historical bac...

This chapter focuses on the challenges that Japan, South Korea and China are currently facing and will face in the following decades. After a brief look at where East Asia stands today and the recent policy course, this Chapter first addresses the general challenges that affect all countries globally (demographic, climate, digital, structural, and...

China presents probably the most astonishing growth miracle in modern world history. This chapter shows how China has developed, starting from the Middle Ages to the present with a special focus on the “Reform and Open-door Policy” under Deng Xiaoping from 1978 onwards. Before outlining individual reforms, this chapter analyzes the special characte...

In light of the growing global economic importance of East Asia, this book analyzes and compares the extraordinary development paths and strategies of Japan, South Korea, and China. It examines both the factors that enabled these countries’ prolonged periods of high-speed economic growth, and the reasons for their subsequent “cool-downs.” In additi...

This chapter compares the development processes in Japan, South Korea and China presented in detail in the previous chapters. Glawe and Wagner first identify the commonalities in the development of the three countries and elaborate on whether these commonalities justify speaking of a special “East Asian development model”. In order to come to a bal...

The European integration process started with the aim of reducing the differences in income and/or living standards between the participating countries over time. To achieve this, a certain alignment of institutions and structures was seen as a necessary precondition. While the goal of this income and institutional convergence was successfully achi...

Convergence in institutions and in per capita income across the European Union (EU) Member States are key goals of the European integrations process. Especially in the course of the various EU enlargement waves starting in 2004, it was intensively discussed whether institutional and structural homogeneity are necessary preconditions for real conver...

The European integration process started with the aim of reducing the differences in income and/or living standards between the participating countries over time. To achieve this, a certain alignment of institutions and structures was seen as a necessary precondition. While the goal of this income and institutional convergence was successfully achi...

We modify the concept of the middle-income trap (MIT) against the background of the Fourth Industrial Revolution and the (future) challenges of automation (creating the concept of the “MIT 2.0”) and discuss the implications for developing Asia. In particular, we analyze the impacts of automation, artificial intelligence, and digitalization on the g...

There is an ongoing debate within the economic growth and development literature whether institutions or human capital are more important for economic growth. We add further arguments to this discussion by focusing on a particular country, namely China. China is an interesting case study since it is often regarded as an exception by having achieved...

Over the last decade, a growing body of literature dealing with the phenomenon of the “middle-income trap” (MIT) has emerged. The term MIT usually refers to countries that have experienced rapid growth and thus reached the status of a middle-income country (MIC) in a very short period of time, but have not been able to further catch up with the gro...

The positive link between good institutions and economic development is well documented in the literature on the deep determinants of economic growth. Consequently, convergence in institutional quality should be a necessary precondition for income convergence; however, only recently, researchers started to investigate empirically the nature of inst...

Schooling is not the same as learning. Nonetheless, many cross-country studies still use the mean school years, that is, a purely quantitative measure, to control for human capital. Thus, they ignore that the learning outcomes of two countries can differ dramatically even if they have the same average years of schooling. The concept of the learning...

There is a significant body of literature arguing that institutional quality is the key for long run economic growth and development. While the majority of these studies are based on cross-country growth regressions, we focus on the institution-economic growth nexus within a particular country, namely China. China is often regarded as an exception...

There is a significant body of literature arguing that institutional quality is the key for long run economic growth and development. While the majority of these studies are based on cross-country growth regression, in our paper, we focus on the institution-economic growth nexus within a particular country, namely China. China is often regarded as...

The so-called ‘deep determinants’ of economic growth and development (namely, geography, institutions, and integration) have been found to be decisive for the break out of stagnation and for explaining cross-country income differences by many empirical studies. However, so far, very little has been done to examine to which extent they are also cruc...

The fundamental, underlying factors of development are often neglected when analyzing the question why countries experience a growth slowdown at the middle-income range. Although these so-called ‘deep determinants’ such as geography and institutions have been found to be decisive for the break out of stagnation and for explaining cross-country inco...

Since 2010–2011, China’s economy has slowed considerably, raising concerns that the country could fall into the so-called “middle-income trap” (MIT). Obviously, an MIT in China would have serious negative consequences not only for the Chinese population but also for the world economy as a whole. We examine whether China is or will be in an MIT by f...

Over the last decade, a growing body of literature dealing with the phenomenon of the “middle-income trap” (MIT) has emerged. The term MIT usually refers to countries that have experienced rapid growth and thus reached the status of a middle-income country (MIC) in a very short period of time, but have not been able to further catch up with the gro...

Artikel zu Middle-Income Trap in China, veröffentlicht in der Zeitschrift "Asia Bridge - Trends/Analysen!Strategien für Ihr Asiengeschäft"; Rubrik "Special China" in Aprilheft

The term middle-income trap (MIT) usually refers to countries that have experienced rapid growth and thus quickly reached middle-income status, but then failed to overcome that income range to further catch up to the developed countries. This paper surveys the MIT literature. It begins by laying out different approaches to defining the MIT and by p...