Economic ModellingPub Date : 2026-05-01Epub Date: 2026-02-01DOI: 10.1016/j.econmod.2026.107517
Qing Guo , Xiangquan Zeng , Lulu Yuan
{"title":"How population aging and digital transformation reshape labor income share? Mechanisms of firm-level substitution and urban job expansion","authors":"Qing Guo , Xiangquan Zeng , Lulu Yuan","doi":"10.1016/j.econmod.2026.107517","DOIUrl":"10.1016/j.econmod.2026.107517","url":null,"abstract":"<div><div>The impact of population aging and digital transformation on the labor income share remains insufficiently understood. Prior research typically examines these forces separately, leaving uncertain how their interaction shapes factor income distribution. This study jointly investigates the effects of aging and digitalization using firm- and city-level data from China (2010–2020) combined with monthly recruitment-platform data to identify the causal impact of demographic shifts and technological change. At the firm level, population aging amplifies the labor-substituting effect of digital adoption, raising capital intensity while reducing labor income share. At the city level, aging strengthens the job-creating effects of digitalization, expanding platform jobs and self-employment that increase labor income share. By revealing these opposing mechanisms—capital substitution versus platform job creation—our findings advance understanding of how demographic and technological forces interact and suggest policies that promote retraining, inclusive digitalization, and flexible labor reforms.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"158 ","pages":"Article 107517"},"PeriodicalIF":4.7,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146192872","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic ModellingPub Date : 2026-05-01Epub Date: 2026-02-09DOI: 10.1016/j.econmod.2026.107515
Tiantian Dai , Shenyi Jiang , Chao Ma , Yang Ming
{"title":"How poverty alleviation improved girls’ school completion in rural China? The role of health","authors":"Tiantian Dai , Shenyi Jiang , Chao Ma , Yang Ming","doi":"10.1016/j.econmod.2026.107515","DOIUrl":"10.1016/j.econmod.2026.107515","url":null,"abstract":"<div><div>This paper examines how China's 8-7 Plan, a large-scale national poverty alleviation program, influenced educational attainment among rural girls. Using nationally representative household panel data and a difference-in-differences framework, we find that the policy significantly increased completion rates for primary and middle school, with the largest gains among girls from relatively better-off poor households. In contrast, high school completion declined, likely due to intra-household resource reallocation under persistent gender norms. Our mechanism analysis reveals that these gains were not driven by direct education spending or household income growth, but by improvements in child health and nutrition. These health improvements were facilitated by better access to clean water, improved sanitation, and greater household food production. This study highlights the importance of health based channels in shaping human capital and contributes new evidence on how poverty reduction programs can enhance educational outcomes through complementary non-educational investments.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"158 ","pages":"Article 107515"},"PeriodicalIF":4.7,"publicationDate":"2026-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146192873","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic ModellingPub Date : 2026-04-01Epub Date: 2026-01-20DOI: 10.1016/j.econmod.2026.107491
Ximeng Liu, Fengzheng Wang, Youtao Xiang
{"title":"Bridging divides with data: Open government data and ESG rating divergence","authors":"Ximeng Liu, Fengzheng Wang, Youtao Xiang","doi":"10.1016/j.econmod.2026.107491","DOIUrl":"10.1016/j.econmod.2026.107491","url":null,"abstract":"<div><div>Fully unleashing the informational value of public data to mitigate ESG rating divergence has become a crucial driver for motivating corporate engagement in sustainable development. Grounded in cognitive consistency theory, the study explores the effects and mechanisms through which open government data influences ESG divergence. The results demonstrate that open government data significantly reduces ESG rating divergence. Through mechanism analysis, we clarify that enhanced corporate information transparency and strengthened information credibility serve as fundamental channels through which open government data alleviates ESG rating divergence. Heterogeneity tests indicate the influence of open government data on ESG divergence is more pronounced under superior innovation conditions, advanced digital transformation, and smaller firm size. This research contributes to reducing ESG rating divergence, guiding corporate participation in ESG practices, and ultimately advancing sustainable development.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"157 ","pages":"Article 107491"},"PeriodicalIF":4.7,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146080834","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic ModellingPub Date : 2026-04-01Epub Date: 2026-01-21DOI: 10.1016/j.econmod.2026.107487
Yunyan Wei , Wen Yue
{"title":"How do free trade agreements affect firms’ export values? Insights into the mechanisms of trade costs and export stability","authors":"Yunyan Wei , Wen Yue","doi":"10.1016/j.econmod.2026.107487","DOIUrl":"10.1016/j.econmod.2026.107487","url":null,"abstract":"<div><div>This study examines the impact of free trade agreements (FTAs) on firms' export values, addressing a gap in the literature regarding how trade liberalization within formal institutions affects firm-level export values. Using data from the Chinese Customs database and the China Stock Market & Accounting Research database (2002–2015), we find, first, that FTAs significantly enhance firms' export values by lowering export costs and improving export stability. Second, these effects are particularly pronounced for small and medium-sized enterprises, younger firms, and firms facing greater financial constraints. Third, FTAs strengthen the export intensive margins and increase the export quantities. Overall, the findings offer valuable insights for promoting sustained export growth and provide policymakers with evidence to support the promotion of FTAs to enhance trade stability in the face of global challenges.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"157 ","pages":"Article 107487"},"PeriodicalIF":4.7,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146080840","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic ModellingPub Date : 2026-04-01Epub Date: 2026-01-16DOI: 10.1016/j.econmod.2026.107482
Xuan Liu, Xiangquan Zeng
{"title":"Labour market concentration and posted wages: Evidence on wage-setting power from a large online recruitment platform in China","authors":"Xuan Liu, Xiangquan Zeng","doi":"10.1016/j.econmod.2026.107482","DOIUrl":"10.1016/j.econmod.2026.107482","url":null,"abstract":"<div><div>Although labour market concentration has received growing academic attention, evidence from developing countries remains limited. This study examines labour market concentration in China using 2016–2022 data from a large online recruitment platform. The results show that labour market concentration significantly reduces posted wages, with particularly pronounced effects for lower-wage positions. Firms with large labour market shares exhibit greater wage-setting power and post significantly lower wages than other employers. In addition, labour market concentration in platform-based employment exerts a stronger downward effect on posted wages than in standard employment. Overall, the findings provide both theoretical and empirical support for policies aimed at mitigating monopsony power in labour markets.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"157 ","pages":"Article 107482"},"PeriodicalIF":4.7,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146080832","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic ModellingPub Date : 2026-04-01Epub Date: 2026-01-28DOI: 10.1016/j.econmod.2026.107502
Xiaohua Ma , Qibing Gao , Jun Wang , Mingquan Wang , Chunhua Zhu
{"title":"A Bayesian synthetic control method via horseshoe priors","authors":"Xiaohua Ma , Qibing Gao , Jun Wang , Mingquan Wang , Chunhua Zhu","doi":"10.1016/j.econmod.2026.107502","DOIUrl":"10.1016/j.econmod.2026.107502","url":null,"abstract":"<div><div>This paper provides a novel Bayesian synthetic control method (BSCM) that integrates a horseshoe prior (H-BSCM) with a panel interactive fixed effects model for policy evaluation involving multiple treated units and staggered treatment timing. Counterfactual posterior distributions are constructed within a Bayesian panel interactive fixed effects framework, with horseshoe priors added to address sparsity in panel data. The new H-BSCM naturally quantifies heterogeneous policy effects while enabling effective variable selection. We further discuss an extension that incorporates hierarchical group structures. Monte Carlo simulations reveal that H-BSCM outperforms existing methods in uncertainty estimation and signal identification. Additional empirical applications across different fields confirm the method’s adaptability. An application to China’s Sulfur Dioxide Emissions Trading Pilot Scheme indicates that the policy significantly reduced industrial <span><math><msub><mrow><mi>SO</mi></mrow><mrow><mn>2</mn></mrow></msub></math></span> emissions, with effects that vary across regions and over time. Overall, the results highlight the effectiveness and practical applicability of the proposed methodology for policy evaluation.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"157 ","pages":"Article 107502"},"PeriodicalIF":4.7,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146191046","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Digital supply chains and firm market performance: Evidence from a quasi-natural experiment in China","authors":"Feng Yun , Jinyu Chen , Shuzhen Liang , Mingxun Liu","doi":"10.1016/j.econmod.2026.107490","DOIUrl":"10.1016/j.econmod.2026.107490","url":null,"abstract":"<div><div>In response to global supply chain restructuring in recent years, China has committed to promoting firm supply chain upgrades through digital technologies. In this paper, we employ China’s Supply Chain Innovation and Application policy (SCIA) as a quasi-natural experiment to examine how supply chain reform affects firms’ market performance. Analyzing data from Chinese A-share listed companies (2014–2022) through a difference-in-difference model, we find that: (1) supply chain reform significantly enhances firms’ operating income and product market performance; (2) the positive impact is more pronounced in firms with higher upstreamness, lower customer stability, those operating in non-high-tech manufacturing sectors, and those with lower initial digitalization levels; (3) the efficacy of supply chain reform operates through two primary mechanisms: optimization of internal resource allocation and reduction of external transaction costs; (4) such reform increases firms’ openness and improve overall performance. Our findings offer valuable policy implications for developing countries and transition economies seeking to modernize their supply chains and accelerate economic transformation in an increasingly digitalized global marketplace.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"157 ","pages":"Article 107490"},"PeriodicalIF":4.7,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146080833","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic ModellingPub Date : 2026-04-01Epub Date: 2026-02-02DOI: 10.1016/j.econmod.2026.107520
Qiucen Ma , Zhiyuan Chen , Congming Ding
{"title":"Traditional clans and modern corporate ESG: Evidence from China","authors":"Qiucen Ma , Zhiyuan Chen , Congming Ding","doi":"10.1016/j.econmod.2026.107520","DOIUrl":"10.1016/j.econmod.2026.107520","url":null,"abstract":"<div><div>This study examines how China's traditional clans affect the environmental, social, and governance (ESG) performance of modern firms. Employing prefecture-level genealogical data and data on A-share listed firms from 2009 to 2022, we find that firms located in regions with strong clan influence tend to exhibit superior ESG performance, particularly in the environmental dimension. This effect is primarily driven by the cultural influence and organizational functions of clans. We also demonstrate that the influence of clans is more significant for firms and regions where formal regulatory oversight is weaker. Our research contributes to the literature by introducing an informal institutional perspective on the determinants of ESG performance.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"157 ","pages":"Article 107520"},"PeriodicalIF":4.7,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146191025","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic ModellingPub Date : 2026-04-01Epub Date: 2026-01-24DOI: 10.1016/j.econmod.2026.107501
Sheng Dai , Timo Kuosmanen , Zhiqiang Liao
{"title":"Quantifying potential gains from efficient resource reallocation: A counterfactual analysis of economic growth in 284 Chinese cities","authors":"Sheng Dai , Timo Kuosmanen , Zhiqiang Liao","doi":"10.1016/j.econmod.2026.107501","DOIUrl":"10.1016/j.econmod.2026.107501","url":null,"abstract":"<div><div>This study examines how efficient resource reallocation across cities affects potential aggregate growth, addressing the limited empirical evidence on output gains from reallocation under realistic constraints. Using data on 284 prefecture-level cities in China from 2003 to 2019, we simulate counterfactual scenarios in which existing aggregate resources are reallocated across cities to quantify the costs of resource misallocation. We find that a nationwide efficient allocation can raise aggregate output by more than 30 percent, with further gains arising from adjustments to administrative divisions. While local reallocation also generates output gains, its effects are relatively modest compared with nationwide reallocation. Even when incorporating geographic constraints, urban development strategies, and restrictions on factor mobility, substantial potential gains remain. These results suggest that reducing resource misallocation can unlock significant untapped growth potential. The findings carry important policy implications for improving allocation efficiency in China and offer broader insights into the links between urban structure, regional integration, and long-run economic growth.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"157 ","pages":"Article 107501"},"PeriodicalIF":4.7,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146191026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Economic ModellingPub Date : 2026-04-01Epub Date: 2026-01-31DOI: 10.1016/j.econmod.2026.107514
Chengming Huang , Sultan Sikandar Mirza , Chengwei Zhang
{"title":"How perceived uncertainty shapes corporate resilience: Evidence from China","authors":"Chengming Huang , Sultan Sikandar Mirza , Chengwei Zhang","doi":"10.1016/j.econmod.2026.107514","DOIUrl":"10.1016/j.econmod.2026.107514","url":null,"abstract":"<div><div>This study examines how firms respond to shifts in economic policy uncertainty (EPU) by analyzing its impact on firm resilience. Using data from 2660 Chinese A-share listed firms from 2010 to 2022, we find that higher firm-perceived policy uncertainty (FEPU) significantly weakens firm resilience. Drawing on real options and growth options perspectives, the results show that firms become less adaptable when uncertainty leads managers to behave more cautiously and when operational decisions—such as cash reserves and R&D spending—are distorted. Social media pressure, however, softens this negative effect by encouraging greater transparency and discipline. The findings also reveal substantial differences across ownership types, financial conditions, and industry characteristics. The study provides practical insights for managers and policymakers seeking to strengthen organizational resilience in uncertain environments and highlights the need to design governance and communication strategies that help firms remain adaptive when policy risks rise.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"157 ","pages":"Article 107514"},"PeriodicalIF":4.7,"publicationDate":"2026-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146191043","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}