Middle Income Trap in Russian Reality: Its Determinants, and Opportunities to Overcome It

The study was aimed at the middle-income trap (MIT) phenomena investigation. Considering the foreign countries experience in prevention of MIT and actions taken to overcome this limbo, suggestions and recommendation of required policies implementation in Russia were made to escape MIT. The research was based on the descriptive characteristics of the MIT situation, econometric and statistical analysis of world experience and the Russian economic situation. As a scientific framework for MIT exploration extensive foreign literature was examined to define the reasons of MIT emergence. During the study the key factors which impeded the transition to the high-income stage in Russia were determined. As a result of the econometric analysis it was found that the economic growth factors differed across low-income, middle-income and high-income countries. Finally, the directions of required policies were identified in order to escape the MIT situation in Russia.