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How Political Alignment Affects Regional Growth and Inequality: Evidence From India 政治结盟如何影响地区增长和不平等:来自印度的证据
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-04-09 DOI: 10.1111/ecpo.70048
Sanjay Kumar Mangla, Chih-Hai Yang
{"title":"How Political Alignment Affects Regional Growth and Inequality: Evidence From India","authors":"Sanjay Kumar Mangla,&nbsp;Chih-Hai Yang","doi":"10.1111/ecpo.70048","DOIUrl":"https://doi.org/10.1111/ecpo.70048","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper examines the role of political alignment in affecting regional growth and interstate inequality in India, the world's largest multiparty democratic country with three layers of fiscal federalism system. Using a state-level data set during the 1991–2022 period, we find that political alignment overall has a positive effect on states' growth. It also affects income inequality across states: a broader measure of political alignment (when both the Union and state are governed by the same party or its allies) has no impact on interstate income inequality. Whereas the narrow definition (when the heads of both the Union and state governments belong to the same political party, not just allies) demonstrates a divergence effect. The effects of political alignment on growth and interstate inequality weaken as institutional capability improves. The growth and inequality effects of political alignment vary considerably during different periods. During the period when an alliance was mandatory to form the government (1991–2013), politically aligned states experienced higher growth and generated a divergence effect. During the period of a single-party stable government (2014–2022), political alignment tended to have a negative growth effect and reduced interstate income inequality. The overall divergence effect is attributed to the faster growth of politically aligned states with higher income levels in the below-median income group.</p>\u0000 </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"706-721"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149099976","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Real Estate Shocks, Liquidity Constraints, and Monetary Policy 房地产冲击、流动性约束与货币政策
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-06-14 DOI: 10.1111/ecpo.70059
Ying Huang, Qiuqin He, Piaoyang Xu
{"title":"Real Estate Shocks, Liquidity Constraints, and Monetary Policy","authors":"Ying Huang,&nbsp;Qiuqin He,&nbsp;Piaoyang Xu","doi":"10.1111/ecpo.70059","DOIUrl":"https://doi.org/10.1111/ecpo.70059","url":null,"abstract":"<div>\u0000 \u0000 <p>We construct a structural vector autoregressive (SVAR) model and a dynamic stochastic general equilibrium (DSGE) model with liquidity constraints in the real estate and household sectors to analyze China's property market downturn. We find that: First, although the slump originated from a real estate liquidity shock, falling housing demand poses a greater risk. Second, China's project completion assurance plan has limited impact, primarily benefiting firms with ample liquidity when the sector faces binding liquidity constraints. Third, both expansionary monetary policy and lower mortgage rates can effectively stimulate the macroeconomy. Fourth, direct central bank lending or guarantees for illiquid developers may better address systemic risks.</p>\u0000 </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"849-869"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149100009","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Ethnic Groups' Access to State Power and Group Size 民族权力与民族规模
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-06-07 DOI: 10.1111/ecpo.70055
Hector Galindo-Silva
{"title":"Ethnic Groups' Access to State Power and Group Size","authors":"Hector Galindo-Silva","doi":"10.1111/ecpo.70055","DOIUrl":"https://doi.org/10.1111/ecpo.70055","url":null,"abstract":"<p>Ethnic-based political inequality is widespread, yet its underlying drivers remain poorly understood. This paper shows that an ethnic group's relative size is a key correlate of its access to central executive power. Using data on 575 groups across 181 countries from 1946 to 2021, and restricting attention to non-dominant groups, I document a robust inverted-U-shaped relationship: intermediate-sized groups receive greater access than both very small and very large groups. I interpret this pattern through a simple model in which incumbents trade off the conflict risk of exclusion against the rent cost of sharing power. The model further predicts that the inverted-U should be pronounced where political institutions have historically been competitive, and weaker and closer to monotone where institutions have been biased toward incumbents. The evidence is consistent with this prediction. Together, the findings highlight how ethnic composition and institutional history jointly shape access to state power.</p>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"790-803"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecpo.70055","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149099557","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
A Barrier or a Bridge? The Impact of Regulatory Proximity on Corporate Green Innovation 障碍还是桥梁?监管接近度对企业绿色创新的影响
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-06-05 DOI: 10.1111/ecpo.70054
Shuxiao Sun, Yuansong Wen, Lanying Peng, Wentao Li, Danlin Zhu
{"title":"A Barrier or a Bridge? The Impact of Regulatory Proximity on Corporate Green Innovation","authors":"Shuxiao Sun,&nbsp;Yuansong Wen,&nbsp;Lanying Peng,&nbsp;Wentao Li,&nbsp;Danlin Zhu","doi":"10.1111/ecpo.70054","DOIUrl":"https://doi.org/10.1111/ecpo.70054","url":null,"abstract":"<div>\u0000 \u0000 <p>Geographic proximity between regulators and firms can significantly influence economic activities. The impact of regulatory proximity from environmental regulators on corporate green innovation remains unclear in existing literature. We address this gap by utilizing a sample of Chinese listed firms from 2007 to 2020. Our findings reveal that a closer geographical distance between firms and their corresponding Environmental Protection Administration positively affects corporate green innovation. Notably, this relationship is particularly pronounced among firms located in regions with more frequent environmental penalties, higher local government environmental protection expenditure, and greater intensity of public environmental petitions. Further analyses of the mechanisms indicate that our findings are driven by the resource acquisition effect, the enhanced environmental ethics effect, and the regulatory deterrence effect. Additionally, a series of endogeneity tests and robustness checks are employed to provide robust support for our hypotheses. This study underscores the pivotal role regulatory proximity plays in shaping firms' ethical conduct and innovative endeavors within the environmental sustainability landscape.</p>\u0000 </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"770-789"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149099927","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Discrepancies in Trade Statistics in 2003–2024: The Impact of Sanctions 2003-2024年贸易统计的差异:制裁的影响
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-04-02 DOI: 10.1111/ecpo.70046
Svetlana Golovanova, Alexandr Rodichev, Yurii Zinyakov
{"title":"Discrepancies in Trade Statistics in 2003–2024: The Impact of Sanctions","authors":"Svetlana Golovanova,&nbsp;Alexandr Rodichev,&nbsp;Yurii Zinyakov","doi":"10.1111/ecpo.70046","DOIUrl":"https://doi.org/10.1111/ecpo.70046","url":null,"abstract":"<div>\u0000 \u0000 <p>This paper is aimed at quantitatively assessing changes in the quality of international trade statistics over the last 22 years and the impact of trade sanctions on the discrepancies between direct and mirror data. Using bilateral flows classified by 2-digit HS codes for all available nations, we find discrepancies declined until 2019, then surged amid recent global shocks. Panel analysis reveals sanctions' dual effect. Sanctioned countries show lower discrepancies, suggesting stricter customs enforcement reduces errors. Conversely, sanction-imposing nations exhibit higher discrepancies, indicating statistical opacity shifts to complex supply chains and re-export hubs used to circumvent restrictions.</p>\u0000 </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"653-664"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149099785","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Health Risks and the Decision to Purchase Commercial Health Insurance in China: The Moderating Role of Trust 中国健康风险与商业健康保险购买决策:信任的调节作用
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-04-08 DOI: 10.1111/ecpo.70049
Yihong Zhu, Bo Qiu, Wei Zhao
{"title":"Health Risks and the Decision to Purchase Commercial Health Insurance in China: The Moderating Role of Trust","authors":"Yihong Zhu,&nbsp;Bo Qiu,&nbsp;Wei Zhao","doi":"10.1111/ecpo.70049","DOIUrl":"https://doi.org/10.1111/ecpo.70049","url":null,"abstract":"<div>\u0000 \u0000 <p>From the perspective of moderating effects, this study examines the role of trust in insurance in the process of shaping households' decisions to purchase commercial health insurance (CHI). On the basis of panel data obtained from three waves of the China Household Finance Survey (CHFS), a logit model is employed to estimate the impact of health risk on CHI uptake, after which the moderating effect of trust in insurance on this relationship is analyzed. The results indicate that trust in life insurance significantly moderates the decision to purchase CHI, whereas trust in other insurance products, such as property insurance, has no significant effect in this context. This study clarifies the differentiated ways in which trust in insurance influences CHI purchasing decisions, thus contributing to the literature on the determinants and mechanisms that underlie such decisions. Furthermore, this study offers practical insights for efforts to mitigate adverse selection in the CHI market and enhancing public participation in commercial health insurance.</p>\u0000 </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"694-705"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149100280","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
A Theory of Repression and Democratic Transition 镇压与民主转型理论
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-04-06 DOI: 10.1111/ecpo.70045
Gaétan Nandong
{"title":"A Theory of Repression and Democratic Transition","authors":"Gaétan Nandong","doi":"10.1111/ecpo.70045","DOIUrl":"https://doi.org/10.1111/ecpo.70045","url":null,"abstract":"<div>\u0000 \u0000 <p>What is the relationship between authoritarian repression and democratization? I reexamine this question by analyzing the problem of an autocrat who intends to install a democracy but faces a highly diverse policy environment. Using a theoretical framework, I show that a strategic use of repression can often contribute to a democratic political transition. In other words, repression and democratization are not always substitutes. A transition to democracy can follow a series of repressions aimed at eliminating ideologically distant opposition. The paper identifies two factors that determine whether this mechanism dominates: the <i>severity</i> and the <i>cost</i> of repression. The model is illustrated by the episodes of democratic transitions in Sub-Saharan Africa.</p>\u0000 </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"665-678"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149099931","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Firms' Innovation Choices Under Tax Tasks: The Trade-Off Between Substantive and Strategic Innovation 税收任务下的企业创新选择:实质创新与战略创新的权衡
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-07-12 DOI: 10.1111/ecpo.70062
Yuyang Ji, Lujun Wang
{"title":"Firms' Innovation Choices Under Tax Tasks: The Trade-Off Between Substantive and Strategic Innovation","authors":"Yuyang Ji,&nbsp;Lujun Wang","doi":"10.1111/ecpo.70062","DOIUrl":"https://doi.org/10.1111/ecpo.70062","url":null,"abstract":"<div>\u0000 \u0000 <p>Using firm-level data from China's National Tax Survey Database for the period 2007–2016, combined with prefecture-level macroeconomic indicators, this study examines the distortionary effects of tax revenue targets on corporate innovation from a dual perspective of substantive versus strategic innovation. The results indicate that tax tasks significantly suppress substantive innovation while simultaneously encouraging strategic innovation. This distortion effect is more pronounced among small-scale firms, non-high-tech enterprises, and firms located in regions characterized by low entrepreneurial activity, as well as in nonprovincial capital and nonmunicipality cities. Mechanism analyses reveal that tax revenue targets affect firms' innovation choices primarily through two channels: the tightening of financing constraints and the inducement of R&amp;D manipulation. Furthermore, the “vertical overweighting” of tax targets across administrative hierarchies exacerbates these distortionary effects. In contrast, the soft-budget-constraint nature of tax target setting and intergovernmental competition “for innovation” partially mitigate the adverse consequences.</p>\u0000 </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"923-942"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149100126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
Do Resource-Constrained Small Private Firms Support Incumbent or Nonincumbent Factions? Evidence From Chinese Township and Village Enterprises 资源受限的小型私营企业是否支持在位或非在位派系?来自中国乡镇企业的证据
IF 2.2 4区 经济学
Economics & Politics Pub Date : 2026-10-05 Epub Date: 2026-06-18 DOI: 10.1111/ecpo.70058
Lee Li, Gongming Qian
{"title":"Do Resource-Constrained Small Private Firms Support Incumbent or Nonincumbent Factions? Evidence From Chinese Township and Village Enterprises","authors":"Lee Li,&nbsp;Gongming Qian","doi":"10.1111/ecpo.70058","DOIUrl":"https://doi.org/10.1111/ecpo.70058","url":null,"abstract":"<p>Research on corporate political strategy emphasizes firm—government engagement but largely treats governments as unitary and political alignment as stable. Drawing on stakeholder theory and the behavioral theory of the firm (BTOF), this study challenges these assumptions by examining how resource-constrained small private firms navigate factionalized political environments. Focusing on Chinese township and village enterprises (TVEs), we theorize that performance feedback shapes firms’ political alignment choices between incumbent and nonincumbent factions. Using four empirical studies and extensive robustness checks, we find that firms experiencing below-aspiration performance are more likely to realign by supporting nonincumbent factions, whereas above-aspiration firms tend to maintain their political ties with incumbent factions. We further show that informal employment conditions these relationships. These findings advance stakeholder theory in incorporating intragovernmental competition, extend BTOF into the political domain, and illuminate how labor informality conditions political behavior. This study offers new insights into firm-state relations in emerging economies where political fragmentation and discretionary power blur the boundary between market competition and political engagement.</p>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 3","pages":"870-886"},"PeriodicalIF":2.2,"publicationDate":"2026-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecpo.70058","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"149100098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
From Capabilities to Peace: Can Mobile Money Reduce Conflicts in Developing Countries? 从能力到和平:移动货币能减少发展中国家的冲突吗?
IF 1.4 4区 经济学
Economics & Politics Pub Date : 2026-06-04 Epub Date: 2026-03-05 DOI: 10.1111/ecpo.70040
Alfred Michel Nandnaba
{"title":"From Capabilities to Peace: Can Mobile Money Reduce Conflicts in Developing Countries?","authors":"Alfred Michel Nandnaba","doi":"10.1111/ecpo.70040","DOIUrl":"https://doi.org/10.1111/ecpo.70040","url":null,"abstract":"<div>\u0000 \u0000 <p>While armed conflict remains a major impediment to economic and political stability in developing countries, the potential role of digital financial inclusion, particularly mobile money, in mitigating violent conflict remains largely unexplored. This article examines the impact of mobile money adoption on armed conflict across 103 developing countries from 2000 to 2020, using the Entropy Balancing method to address selection bias. The findings show that mobile money significantly reduces violent conflicts, with an average decrease of 282 conflict-related deaths. These results remain robust across various sensitivity checks, including alternative model specifications, instrumental variable techniques to account for the reverse causality, and analyses of dynamic and spillover effects. The study also highlights important heterogeneity in the impact depending on the type of mobile money service, the country's level of development, the duration of the conflict, financial sector development, and geographic region. Moreover, it identifies key economic channels, including income, unemployment, inequality, and consumption volatility, through which mobile money contributes to the reduction of violent conflict. These findings underscore the strategic importance of digital financial services for promoting peace and fostering economic development in low- and middle- income countries.</p>\u0000 </div>","PeriodicalId":47220,"journal":{"name":"Economics & Politics","volume":"38 2","pages":"598-618"},"PeriodicalIF":1.4,"publicationDate":"2026-06-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148160784","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
引用次数: 0
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