Economies

17 pages, 486 KiB

Open AccessArticle

“Crises Around the World Have Been More Frequent and Deeper”—But How Do They Impact EU Convergence?

by Dženita Šiljak

Economies 2025, 13(8), 214; https://doi.org/10.3390/economies13080214 - 24 Jul 2025

This paper analyzes how two major economic downturns—a recession and a stagflation—affected convergence in the European Union (EU). Absolute and conditional convergence rates are estimated using ordinary least squares (OLS) semilog regressions based on cross-sectional data from 2004 to 2022. The study tests two hypotheses: there was no absolute convergence in the EU during either the recession or the stagflation period, and conditional convergence occurred during the recession but not during stagflation. The regression results indicate that neither hypothesis can be rejected. External variables—economic openness, inflation, and investment—were more influential during stable periods, whereas internal variables—debt, unemployment, and the control of corruption—had a greater impact during crises. These findings suggest that the EU was more institutionally prepared for the stagflation due to mechanisms developed after the financial crisis, but these tools proved less effective in addressing supply-side shocks. Full article

(This article belongs to the Special Issue Studies on Factors Affecting Economic Growth)

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21 pages, 1128 KiB

Open AccessArticle

Meta-Analysis: The Impact of Immigration on the Economic Performance of the Host Country

by Alexandre Luz, Pedro Cunha Neves, Oscar Afonso and Elena Sochirca

Economies 2025, 13(8), 213; https://doi.org/10.3390/economies13080213 - 24 Jul 2025

Abstract

Growing global migration flows highlight the importance of understanding their economic impact. While many studies have explored how immigration affects host countries’ macroeconomic indicators, the results are mixed. In this work, we develop a meta-analysis to investigate the effect of immigration on the economic performance of the host country, focusing on key indicators such as economic growth, productivity, unemployment, and innovation. The results indicate that, on average, immigration has a positive and statistically significant impact on economic performance. The effect varies based on immigrant and host country characteristics, including qualifications, age, and economic development level. Additionally, differences in methodological approaches across studies contribute to the observed heterogeneity in findings. These findings underscore the importance of further research on the economic effects of immigration and offer implications for both policy and future research. Full article

(This article belongs to the Special Issue Economics of Migration)

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32 pages, 2036 KiB

Open AccessArticle

Exploring the Impact of Digital Inclusive Finance and Industrial Structure Upgrading on High-Quality Economic Development: Evidence from a Spatial Durbin Model

by Liuwu Chen and Guimei Zhang

Economies 2025, 13(8), 212; https://doi.org/10.3390/economies13080212 - 24 Jul 2025

Abstract

This study investigates the impact and mechanisms of digital inclusive finance (DIF) on high-quality economic development in China. Drawing on panel data from 281 prefecture-level cities between 2011 and 2021, we employ a Spatial Durbin Model (SDM) to analyze both the direct effects and spatial spillovers of DIF. The results indicate that (1) DIF has a significantly positive effect on high-quality development, which remains robust after conducting various stability and endogeneity tests; (2) DIF strongly contributes to economic upgrading in eastern regions, while its impact is weaker or even negative in central and western regions, revealing notable regional disparities exist; (3) a key finding is the identification of a double-threshold effect, suggesting that the positive influence of DIF only emerges when financial and industrial development surpass certain thresholds; (4) results from the two-regime SDM further show that spillover effects are more prominent in non-central cities than in central ones; and (5) mechanism analysis reveals that DIF facilitates high-quality growth primarily by promoting industrial structure upgrading. These findings underscore the importance of region-specific policy strategies to enhance the role of DIF and reduce spatial disparities in development across China. Full article

(This article belongs to the Topic The Multidimensional Synergy Measures to Achieve Sustainable Regional Socio-Economic Development)

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20 pages, 1576 KiB

Open AccessArticle

Human Capital and Labor Supply Decisions in Immigrant Families: An Alternative Test of the Family Investment Hypothesis

by Sarit Cohen Goldner, Chemi Gotlibovski and Nava Kahana

Economies 2025, 13(8), 211; https://doi.org/10.3390/economies13080211 - 23 Jul 2025

Abstract

Immigrant households frequently face liquidity constraints upon arrival, which potentially hinders their long-term economic integration. The Family Investment Hypothesis (FIH) suggests that couples may respond to these constraints by coordinating their labor supply: one spouse works to finance the other’s investment in local human capital. Previous studies have tested the FIH by comparing married immigrants to married natives, attributing differences in outcomes to financial constraints. However, this approach may conflate such constraints with other inherent differences between immigrants and natives. This paper introduces a novel identification strategy that compares the differences in labor market outcomes of married and single immigrants to those of their native-born counterparts, allowing for better isolation of the effects of liquidity. Applying this strategy to repeated cross-sectional data on immigrants from the Former Soviet Union who arrived in Israel during the 1990s, the analysis finds no supporting evidence for the FIH. One possible explanation for this finding is the substantial government support extended to these immigrants, which may have mitigated their financial constraints. Alternatively, the results may indicate that immigrant households do not systematically adjust their labor supply in accordance with the FIH framework. These findings highlight the importance of the institutional context in shaping household labor supply decisions. Full article

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29 pages, 705 KiB

Open AccessArticle

Port Power and Trade Flows: Evaluating China’s Infrastructure Leverage in EU Markets Through a Gravity Model

by Alexandros Gkatsikos

Economies 2025, 13(8), 210; https://doi.org/10.3390/economies13080210 - 22 Jul 2025

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Abstract

This study investigates how Chinese ownership in European ports affects trade flows between China and Eurozone countries, set against the backdrop of recent global economic disruptions that have emphasized the crucial role of maritime trade and port efficiency. An augmented gravity model was employed, using the Poisson pseudo-maximum likelihood (PPML), fixed effects (FE), and random effects (RE) estimators, to analyze trade data from 2001 to 2023. The analysis shows that, while conventional economic factors like GDP per capita and the Logistics Performance Index (LPI) consistently and significantly drive trade, Chinese port ownership surprisingly exhibits a negative or statistically insignificant impact on both Chinese exports to the EU and EU imports from China. This suggests that these acquisitions may not primarily boost overall bilateral trade but rather consolidate existing routes or serve broader strategic objectives, as evidenced by heterogeneous country-specific effects and phenomena like the “Rotterdam effect”. Ultimately, my findings underscore the paramount importance of logistical efficiency over ownership structure in facilitating trade. Full article

(This article belongs to the Section International, Regional, and Transportation Economics)

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Economies, Volume 13, Issue 8 (August 2025) – 5 articles

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