IS TURKEY IN A MIDDLE INCOME TRAP?

Every government faces the same question, is the growth sustainable? For many, the barrier from being a middle income country to a high income country is quiet high. In our analysis, Turkey, as a middle income country will be investigated for the period from 1960 to 2014. For the empirical analysis Robertson and Ye (2013) will be followed. Standard Unit root tests and also unit root test with structural breaks will be considered. Apart from the answer of the question if Turkey is in a middle income trap or not, there are few points that will be advised to avoid such risk.