Economic ModellingPub Date : 2025-09-04DOI: 10.1016/j.econmod.2025.107299
Yihan Han , Silu Pang , Fuxin Jiang , Tao Wang
{"title":"Does “Made in China (2025)” improve innovation quality in robotics? Evidence from PageRank-based patent network","authors":"Yihan Han , Silu Pang , Fuxin Jiang , Tao Wang","doi":"10.1016/j.econmod.2025.107299","DOIUrl":"10.1016/j.econmod.2025.107299","url":null,"abstract":"<div><div>As industrial policy shifts toward innovation orientation, understanding its role in shaping high-quality innovation is both timely and essential. This paper evaluates the impact of China's “Made in China (2025)” (MIC2025) pilot policy on the innovation quality of robotics firms using a difference-in-differences approach. To overcome limitations of traditional patent indicators, we introduce an enhanced PageRank algorithm to measure high-value innovation through patent citation networks. Results show that the MIC2025 policy significantly improves innovation quality, particularly in midstream and downstream segments of the robotics value chain. Mechanism analysis reveals that targeted innovation subsidies, stronger intellectual property protection, enhanced technology diffusion, and talent agglomeration jointly contribute to this improvement. These findings highlight how targeted industrial policy can foster high-quality innovation and suggest that future policy design should align support with firm capabilities and value chain characteristics.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107299"},"PeriodicalIF":4.7,"publicationDate":"2025-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145018909","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 : 2025-09-03DOI: 10.1016/j.econmod.2025.107293
Chengchun Li , Sailesh Tanna , Glauco De Vita , Keyi Yang , Yun Luo , Yan Chen
{"title":"Do foreign direct investment and trade affect the relationship between temperature and civil conflict?","authors":"Chengchun Li , Sailesh Tanna , Glauco De Vita , Keyi Yang , Yun Luo , Yan Chen","doi":"10.1016/j.econmod.2025.107293","DOIUrl":"10.1016/j.econmod.2025.107293","url":null,"abstract":"<div><div>This study investigates the role of countries’ outward orientation in the relationship between temperature and civil conflict. We add to existing literature by highlighting the importance of FDI and trade openness as mitigating factors to reduce the risk of temperature-induced conflict. Using data from 62 developing countries covering the period 1990–2022, and incorporating several estimation methods and robustness tests, our results indicate that higher temperature increases conflict risk, while FDI inflows, particularly non-primary sector FDI, and trade openness, weaken the positive association by virtue of technical innovation and their capacity to stimulate sustainable practices and climate adaptation strategies. Hence, greater trade with developing countries, along with higher foreign investment into their secondary and tertiary sectors, alleviates their trade-off between extreme temperatures and civil conflict. This broader understanding of the macroeconomic factors moderating the temperature-conflict relationship offers another valuable perspective for inter-governmental climate policy-making efforts to reduce civil conflict.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107293"},"PeriodicalIF":4.7,"publicationDate":"2025-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145048361","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 : 2025-09-01DOI: 10.1016/j.econmod.2025.107291
Xinran Liu , Deng-Kui Si
{"title":"Does Digital Inclusive Finance Promote Innovation? Evidence from China","authors":"Xinran Liu , Deng-Kui Si","doi":"10.1016/j.econmod.2025.107291","DOIUrl":"10.1016/j.econmod.2025.107291","url":null,"abstract":"<div><div>The deep integration of inclusive finance with digital technologies emerges as a crucial force for bridging service gaps, expanding financial access to underserved populations, and fostering sustainable economic growth. This paper utilizes the data from 270 cities in China spanning 2011 to 2022 to investigate the impacts of digital inclusive financial development on technological innovation. The results show that digital inclusive finance significantly promotes technological innovation, mainly driven by enhancing credit availability, improving resource allocation efficiency, and optimizing the consumption structure. The heterogeneity results reveal that this effect is pronounced in cities characterized by advanced marketization, high internet penetration, high human capital, and strong intellectual property protection. This paper contributes to facilitating coordinated urban development and provides practical significance for accelerating the digital convergence of metropolitan production networks.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107291"},"PeriodicalIF":4.7,"publicationDate":"2025-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145004318","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":"Calorie consumption and wages: Evidence from India’s labor market","authors":"Kaushalendra Kumar , Ashish Singh , Santosh Kumar Gautam , Abhishek Singh","doi":"10.1016/j.econmod.2025.107279","DOIUrl":"10.1016/j.econmod.2025.107279","url":null,"abstract":"<div><div>Using nationally representative data from India, this study estimates the effect of calorie intake on wages. To account for endogeneity and heterogeneity, we apply Instrumental Variable and Instrumental Variable Quantile Regression methods. Results suggest that higher calorie consumption positively affects workers’ wages. A 10% increase in per capita calorie intake per day leads to a 2.5% increase in daily wages. The wage effect varies by occupation type and across the wage distribution; the marginal effect of calorie intake on wage is higher at lower quantiles of the wage distribution and for non-elementary workers. Our findings highlight the need for nutritional supplementation, particularly for workers at low and median wage levels, to maximize the wage gains from nutritional public policies.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107279"},"PeriodicalIF":4.7,"publicationDate":"2025-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145004319","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 : 2025-08-30DOI: 10.1016/j.econmod.2025.107292
Ying Liu , Wenming Chao , William Mbanyele , Bingcheng Zhu , Hongyun Huang
{"title":"From pilot to peers: How intelligent manufacturing policy drives corporate intelligent transformation through demonstration effects","authors":"Ying Liu , Wenming Chao , William Mbanyele , Bingcheng Zhu , Hongyun Huang","doi":"10.1016/j.econmod.2025.107292","DOIUrl":"10.1016/j.econmod.2025.107292","url":null,"abstract":"<div><div>Intelligent manufacturing is a key strategic initiative for advancing China's manufacturing capabilities, and its effective implementation across industries and regions remains an important area of policy exploration. Using data on Chinese A-share manufacturing firms from 2009 to 2022, we exploit a quasi-natural experiment based on the Intelligent Manufacturing Demonstration Project (IMDP) to examine the policy's spillover effects. Our results show that IMDP pilot firms significantly drive intelligent transformation among non-pilot firms in the same city and industry. The policy effects propagate through competitive pressure, institutional pressure, and learning spillovers. Moreover, the impact is stronger for non-state-owned firms, firms with more skilled workers, and those with fewer financing constraints. Our findings suggest that well-designed pilot policies can create catalytic effects that extend beyond targeted firms, thereby promoting broader technological upgrading across the manufacturing sector. These results provide valuable insights into how policymakers can amplify the impact of industrial policies through strategic demonstration and diffusion mechanisms.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107292"},"PeriodicalIF":4.7,"publicationDate":"2025-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145009981","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 : 2025-08-30DOI: 10.1016/j.econmod.2025.107275
Hyun Woong Park
{"title":"Leverage–led growth in the circuit of capital model with a banking sector","authors":"Hyun Woong Park","doi":"10.1016/j.econmod.2025.107275","DOIUrl":"10.1016/j.econmod.2025.107275","url":null,"abstract":"<div><div>Economic growth in the circuit of capital model with effective demand is fundamentally leverage-led. This paper extends the circuit of capital model by incorporating a banking sector and related financial variables, identifying three types of growth regime: firm leverage-led, bank leverage-led, and investment-led. The key findings are as follows. First, growth potential is strongest when driven by investment and firm leverage, but this leads to an unbounded rise in the interest rates. In contrast, bank leverage-led growth imposes upper limits on both growth and the interest rate. Second, the interest rate rises across all growth types, except in bank leverage-led growth, where the interest rate may fall under certain conditions. Third, the effects on financial fragility differ across growth types: investment-led growth has no impact on it, firm leverage-led growth raises it, and bank leverage-led growth reduces it.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107275"},"PeriodicalIF":4.7,"publicationDate":"2025-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144925434","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 : 2025-08-30DOI: 10.1016/j.econmod.2025.107261
Anh Phuoc Thien Nguyen
{"title":"Export expansion and children’s school-work decision: Evidence from Vietnam","authors":"Anh Phuoc Thien Nguyen","doi":"10.1016/j.econmod.2025.107261","DOIUrl":"10.1016/j.econmod.2025.107261","url":null,"abstract":"<div><div>This paper examines the impact of export expansion on human capital investment in Vietnam induced by the U.S-Vietnam Bilateral Trade Agreement (BTA). Using a rich household survey, I show that provinces more exposed to the tariff reduction from the BTA experienced a small decline in school attendance for children aged between 10–17 years old and a corresponding increase in children’s market work participation. This adverse BTA effect is on average stronger for boys, older children and households with low-educated head, indicating a dominating substitution effect that increases the opportunity costs of schooling. However, this masks a substantial heterogeneity across the gender-age dimension. Specifically, I find that while the BTA shock causes older boys to take market work for pay, it increases employment in household business for young girls and makes them substitute into domestic work.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107261"},"PeriodicalIF":4.7,"publicationDate":"2025-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144996386","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 : 2025-08-28DOI: 10.1016/j.econmod.2025.107288
Shangkun Deng , Yongqi Li , Yingke Zhu , Bingsen Wang , Hong Ning , Siyu Yi , Tatsuro Shimada
{"title":"Financial distress warning and risk path analysis for Chinese listed companies: An interpretable machine learning approach","authors":"Shangkun Deng , Yongqi Li , Yingke Zhu , Bingsen Wang , Hong Ning , Siyu Yi , Tatsuro Shimada","doi":"10.1016/j.econmod.2025.107288","DOIUrl":"10.1016/j.econmod.2025.107288","url":null,"abstract":"<div><div>Financial distress is typically not a sudden occurrence, but rather the outcome of accumulated operational inefficiencies and external pressures. In China’s capital market, existing financial distress warning models offer limited interpretability, making it challenging for regulators to obtain a reliable basis for risk identification. To address this limitation, we propose an interpretable machine learning framework that integrates extreme gradient boosting with non-dominated sorting genetic algorithm II for multiobjective optimization, and Shapley additive explanations with interpretive structural modeling to reveal both the marginal effects and the risk formation pathways of financial indicators. Using empirical data from A-share listed firms between 2010 and 2024, the optimized model demonstrates a 3.32 % improvement in warning accuracy and a 2.15 % gain in efficiency compared with benchmark models. Furthermore, the findings show that the predictive influence of profitability diminishes as the lead time before financial distress increases. Overall, this study presents an interpretable model that enables regulators and policymakers to identify financial risks at earlier stages and implement targeted interventions in the market environment.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107288"},"PeriodicalIF":4.7,"publicationDate":"2025-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144922437","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 : 2025-08-28DOI: 10.1016/j.econmod.2025.107289
Yongguang Long , Xiaoru Zhang , Long Wang
{"title":"How does government data openness affect cross-regional capital flow? Evidence from Chinese-listed firms’ off-site investment","authors":"Yongguang Long , Xiaoru Zhang , Long Wang","doi":"10.1016/j.econmod.2025.107289","DOIUrl":"10.1016/j.econmod.2025.107289","url":null,"abstract":"<div><div>Transaction cost theory posits that information is a key factor in facilitating enterprise decision-making, yet its validity in the digital age remains to be tested. China's government data openness provides an opportunity to do so. This study examines the impact of government data openness on cross-regional capital flows using data from Chinese-listed companies between 2009 and 2022. We find that government data openness significantly facilitates cross-regional capital flows, with effects particularly pronounced for labor-intensive firms, firms with stronger governance capacity, and those with weaker government–business ties. Mechanism analysis shows that open government data promote capital movement by improving the external business environment and reducing institutional transaction costs. Further, we find that higher-quality data openness and greater local government fiscal transparency amplify these positive effects on cross-regional capital flows.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107289"},"PeriodicalIF":4.7,"publicationDate":"2025-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145003548","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":"Betting against the odds? The effect of mental health on problem gambling behavior","authors":"Dusanee Kesavayuth , Prompong Shangkhum , Vasileios Zikos","doi":"10.1016/j.econmod.2025.107278","DOIUrl":"10.1016/j.econmod.2025.107278","url":null,"abstract":"<div><div>This study examines mental health as a risk factor for problem gambling. Drawing on representative longitudinal data from Australia, we hypothesize that poor mental health increases the probability of engaging in problem gambling. The idea is that risky behaviors like gambling may serve as coping mechanisms for emotional distress. To address the endogeneity of mental health, we employ an instrumental variables approach. We find that poor mental health can increase the likelihood of problem gambling. Specifically, a one standard deviation decrease in mental health leads to an increase of 8 percentage points in the probability of being a problem gambler. Our findings highlight the importance of prioritizing mental health alongside, or even above, changes to gambling regulations.</div></div>","PeriodicalId":48419,"journal":{"name":"Economic Modelling","volume":"152 ","pages":"Article 107278"},"PeriodicalIF":4.7,"publicationDate":"2025-08-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144996385","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}