The political economy of the middle income trap

A 2012 World Bank study found that only 13/101 middle-income countries in the 1960s managed to achieve advanced economy status. This jarring finding fueled interest in understanding the causes of the 'middle income trap'. Why have so few countries managed to break through to high-income levels? How do political and economic institutions constrain economic productivity, and ultimately, growth? Dr Nahee Kang researches the political economy determinants of productivity that underpin the middle income trap.

Find out more about the Political Economy of the Middle Income Trap

Going global from Latin America?

In Latin America, the formation of large corporations has been impeded by complex regulatory systems and political instability. How have some companies managed to overcome these barriers to growth and achieve regional and global expansion? How a new generation of small, entrepreneurial exporters been fostered? Dr Luciano Ciravegna explores Latin American family firms (longevity, internationalisation, innovation) and emerging market multinationals (internationalization, performance, impact on development).

Rebuilding globalisation and macroeconomics, from the grassroots

Corporate accountability is gaining ground across Europe – with activism in Belgium, Germany, Finland, Luxembourg and Switzerland. How do we explain this flurry of activism and legislative success? Why is it happening now, and in its varied forms across these countries? Dr Alice Evans’ research sheds light on how people come to empathise with distant others, organise for legislative change and create more inclusive globalisation.

Find out more about the Rebuilding Macroeconomics project

Hunger and obesity in Brazil and Mexico

Work on politics and economic reforms in Brazil has laid bare the domestic drivers of trade liberalisation, the harsh and long-lasting effects of 1980s austerity, and the politics and policies permitted by the 2000s commodities boom. How do these reforms play out in everyday lives in Brazil? How are state-business relations shaping health? Dr Ed Gomez researches the politics of the food industry in Brazil and Mexico and the implications for hunger and obesity.

Governing the Market 2.0: which firms are the contemporary growth engines?

We are keenly interested in the growth and evolution of companies and industries as part of development strategies. One area of our work has focused on East Asia, and in particular in South Korea, where chaebols – large industrial corporations such as Samsung – have come to dominate industrial strategies and politics. How have state-business relations involved in the contemporary era? To what extent do the chaebol continue to drive innovation? Dr Nahee Kang and Dr Robyn Klingler-Vidra explore large – and small – Korean firms as engines of innovation, growth and redistribution.

Patient capital, innovation and economic growth

Patient capital is essential to economic development, and growth more broadly, as it enables investment in infrastructure and innovation. The archetypal cases of the 'main banks' were instrumental in boosting economic activity in post-war Japan and Germany. Whilst many countries want to increase their share of patient capital in the contemporary era, questions remain about what patient capital is. Beyond the characteristic of a long time-horizon, what are the aspects of investment capital that make it patient? How do we encourage patient capital? Members of the research group are working on conceptualising patient capital in various finance realms, and also testing for its existence empirically across geographies and financial instruments.