Evidence of the Middle-Income Trap in Latin American Countries: Factor Analysis Approach Using Regression and the ARDL Model

The middle-income trap (MIT) is often accompanied by the decline or stagnation of economic growth, unreasonable domestic industrial structure, and serious polarization between rich poor. However, due to different international environments, specific national conditions, development policies adopted each country, how get out MIT varies. This study carries an analysis growth factors Latin American countries (we selected 19 33) compared them with Singapore Korea, which are in a high-income range. We used regression model find relationship variables country impact on these variables. finds using correlation analysis, that trade foreign direct investment (FDI) play major role avoiding having strong (R 2 = 1.481*** for S. R 0.65 Singapore) gross product (GDP) while weak countries. Another factor industrialization services export vital South same should be avoid MIT. Furthermore, panel ARDL we validated results established similar impacting countries’ Correlation determine their strength economy. In final section, present countries, main policy gaps according unique characteristics recommend suggestions comparing economies those