development

Middle-income trap has become a very popular narrative to explain the fact, that while it is relatively “easy” to catch up from low to middle-income level, it has been very hard and rare to emerge from the middle-income status into a highly developed economy. The question is, how to escape this trap? why some countries have been successful although the great majority has failed?

It is crucial to learn which factors could influence the income status of a region. In our study we try to collect basic data which well-represent the chosen topic, and more importantly, which are easy to access and are interpretable on smaller (for example settlement) territorial levels. Based on our hypothesis the received subsidies, the taxes paid by local people and the gross value added generated by local enterprises show strong correlation with the formation of the income status, and this hypothesis was tested for cities and towns in this paper.