Middle- income trap refers to a situation whereby a middle-income country is failing to
transtion to a high income economy due to rising costs and declining competitiveness.
Two key critical factors for improvement inorder to aviod or escape such trap. High level
and sustainability of investment that embosy new technologies and innovation conducive
policies.
Other considerations like Stable macroecnonmic environment: sensible fiscal monetary
and regulatory policies, strong regional and global ties, increasing urbanization.
Caiptal flows through foreign diect investment and economic liberaliztion and generation
domestic capability.