Template-Type: ReDIF-Article 1.0

Author-Name: Magdolna Csath
Author-Workplace-Name: Pazmany Peter Catholic University, University of Public Service
Author-Email: csath.magdolna@uni-nke.hu


Title: Growth or Development Trap

Abstract: In this essay, we explore how to obtain a more accurate picture not only of the
growth situation as measured by traditional economic indicators, but also of the
level of development, which also raises the possibility of becoming trapped. We
distinguish between development and growth, pointing out that Hungary has good
growth figures, but lags behind in terms of development indicators. This discrepancy
requires further, more detailed analysis in order to define desirable targets for
development indicators that are independent of growth indicators, and to avoid
the development trap by achieving them. This is also justified because, in the longer
term, the evolution of development indicators also affects the chances of sustainable
growth and allows for more general, systemic qualitative progress. Based on the
statistical data presented in relation to the issues raised, we conclude that it would
be necessary to construct a mathematical model of growth and development to
illustrate and econometrically analyse the dynamic relationship. But this is not
undertaken in the context of this essay.

Classification-JEL: E22, I15, I25, J24, O11, P52
Keywords: middle-income trap, middle development trap, resilience, adaptability, intangible investment, growth models
Pages: 152-174
Volume: 21
Issue: 2
Year: 2022
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-21-2-ove1-csath.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:21:y:2022:i:2:p:152-174