Economic downturns and compositional effects in regional population structures by age: a multi-temporal analysis in Greek regions, 1981–2017

Population movements (international and internal migration) and changing fertility and mortality patterns have significantly affected demographic structures. Investigation of the relationship between (evolving) population structures and economic downturns is a key issue in economic demography. Analysis of compositional changes in regional population structures over a sufficiently long time interval may provide an informed knowledge to better understanding of this relationship and the underlying socioeconomic context in European countries. Based on these premises, Greece was considered a paradigmatic case of sequential economic expansions and recessions, impacting the structure of resident population in the last four decades. In this work, changes over time in population structures by age in Greek regions were explored (1981–2017) using a multi-temporal principal component analysis. A diachronic analysis of compositional effects of economic downturns on regional population structures indicates spatially-heterogeneous demographic processes in Greece. The subsequent recession has represented a turning point in Greek demography, consolidating changes in traditional family structures, while stimulating out-migration at younger ages to Northern and Western European regions and containing immigration from developing countries. Metropolitan areas and coastal districts had more rapid population dynamics, while peripheral rural regions experienced more rapid changes towards aging. Population aging had a short-term impact on regional population structures in Greece, with possibly negative consequences for the ability of the country’s economy to recover from crisis.

     

The migration response to local labour market shocks: Evidence from EU regions during the global economic crisis

The global economic crisis has strongly affected Europe's economic geography. This study investigates the role of local labour market disparities in determining regional net in‐migration rates. While only a weak link is detected in the precrisis period, the local labour market context of migration grows significantly stronger during the crisis. Decompositions of the estimation results show that changes in migration rates are firstly a result of widened disparities across European regions throughout the crisis. However, also behavioural adjustment processes occur, e.g. an orientation of migrants towards urban areas and away from regions with persistently high long‐run unemployment rates.     

Waste of money or growth opportunity: The causal effect of EU subsidies on Hungarian SMEs

Although EU subsidies aiming at economic development play a pivotal role not only for Hungary but for the entire European Union as well, there is a debate regarding their effectiveness in the literature. This paper investigates the impact of direct economic development subsidies extended in the context of Structural Funds and the Cohesion Fund as part of the 2007–2013 programming period of the European Union on Hungarian micro, small and medium-sized enterprises. Based on a micro database, we evaluate the impact of corporates’ first subsidies on various performance indicators, using a combination of propensity score matching and fixed effects panel regression. According to our results, economic development funds had a significant positive effect on the number of employees, sales revenue, gross value added and, in some cases, operating profit. However, the labour productivity of enterprises was not significantly affected by any of the support schemes. Furthermore, by explicitly comparing non-refundable subsidies (grants) and refundable assistance (financial instruments), we find that there is no significant difference in the effectiveness of the two types of subsidy.     

The economic impact of migration: productivity analysis for Spain and the UK

Over the past 20?years labour has become increasingly mobile and whilst employment and earnings effects in host countries have been extensively analysed, the implications for firm and industry performance have received far less attention. This paper explores the direct economic consequences of immigration on host nations?? productivity performance at a sectoral level in two very different European countries, Spain and the UK. Whilst the UK has traditionally seen substantial immigration, for Spain the phenomenon is much more recent. Our findings from a growth accounting analysis show that migration has made a negative contribution to labour productivity growth in Spain and a negative but negligible contribution in the UK. This difference is driven by a positive impact from migrant labour quality in the UK. This finding broadly holds across all sectors, but we note considerable variation in magnitudes. Labour productivity growth has a neutral contribution from migrant labour in construction and personal services in the UK, whilst in every case in Spain the effect is negative, most strongly in agriculture. Using an econometric approach to production function estimation we observe a positive long term effect on total factor productivity from migrant workers in the UK and a negative effect in Spain. Our findings suggest that either the UK is better at assimilating migrants or is more selective in terms of who is permitted to migrate.     

From Bismarck to Maastricht: The March to European Union and the Labor Compact

This paper considers the likely impact that European Union (EU) will have on the labor compact. It is argued that, despite increased economic integration in Europe, countries will still be able to maintain distinct labor practices if they are willing to bear the cost of those practices. The incidence of many social protections probably already falls on workers. In addition, it is argued that imperfect mobility of capital, labor, goods and services will limit the pressure that integration will place on the labor compact. Evidence is presented suggesting that labor mobility among EU countries has not increased after the elimination of remaining restrictions on intra-EU labor mobility in 1993. Moreover, immigration from non-EU countries, which is much larger than intra-EU migration, has declined since 1993. Evidence is also reviewed suggesting that the demand for social protection rises when countries are more open, and therefore subject to more severe external shocks. This finding suggests that increased economic integration and European Monetary Union (EMU) could lead to greater demand for social protection. The U.S. experience with state workers' compensation insurance programs is offered as an example of enduring differences in labor market protections in highly integrated regional economies with a common currency.     

The Globalization of Privacy

A bstract . The Council of Europe is currently considering a directive that would harmonize data protection laws throughout the European Community. If approved, this directive would affect exchanges of personal information between European countries and the United States. This article argues that the proposed Data Protection Directive will lead to a strengthening of American privacy laws. This will occur not as a simple reaction to a perceived economic threat, but because a number of social, economic and political changes in the privacy environment in the United States converge at this time. The European Directive presents an opportunity for policy change to occur, but will not be the cause of the change.     

European industrial relations in 1999: chronicle of events

This article chronicles industrial relations developments throughout the European Union (EU) during 1999. The information is gleaned from articles published by the European Industrial Relations Observatory (EIRO). The text therefore contains numerical references to records contained in the EIRO database in order to allow the reader easy access to the relevant records. The article is divided into five sections. The first contains an overview of political, economic and legislative events at EU‐level, the second looks at EU‐level developments in employee representation, the third looks at the impact of European economic and monetary union (EMU) on industrial relations and collective bargaining and the fourth and fifth give a more detailed country‐by‐country analysis of main trends in key industrial relations areas—collective bargaining and industrial action; and employment creation, working time and new forms of work.     

A Pluralist Alternative: Mexican Women,Migration, and Regional Development

This works explores the current phenomenon of Mexican migration and its relation to the female head of household phenomenon of rural migrant communities from a pluralistic approach to economic development. This study emphasizes the role that women can play in the development of Mexican rural communities, a region where the impact of free market policies has exacerbated the historical conditions of poverty and marginalization, and consequently, the increase of migration to the United States. The impact of women, if given the opportunities, is crucial to enhance development in the region. Women must be empowered through the provision of employment and included in the economic policy agenda.     

The impact of the economic crisis on the (in)efficiency of public Higher Education institutions in Southern Europe: The case of Spanish universities

The evaluation of university efficiency in Europe began timidly when the European Higher Education Area (EHEA) was created. However, this issue is currently becoming increasingly important in Southern European countries, where the limitation of public funding following the economic crisis in 2008 has put greater pressure on their public universities to achieve excellence and improve competitiveness. In this context, the goals of this paper are: first, to measure the relative technical (in)efficiency of Spanish public Higher Education Institutions in the period 2002–03 to 2012–13, comparing the situation before and during the last economic crisis; and, second, to analyze the determinants of university (in)efficiency and, especially, the direct impact of the crisis. After applying the two-stage double bootstrap DEA methodology, the results show that Spanish public universities have become more efficient during the crisis than before it. In fact, the regression analysis confirms that the “crisis” variable has had a statistically significant positive impact on university efficiency. We also find that age has favorably influenced how these institutions utilize their resources to produce teaching and research outputs, but technical specialization has had a negative effect. Moreover, the regional location of public universities has been also a crucial determinant of their efficiency level. Our findings are therefore relevant for political and academic decision-makers in order to know if public universities have been adequately managed in the crisis period and to identify factors that could improve their efficiency, and hence to help them to enhance their international competitiveness in the future.     

The German model in danger

The German high‐skills/high value‐added economy has long been the Mecca for supporters of the European social model. So long as Model Deutschland was thriving the notion of Social Europe was a plausible political project. But Germany is facing a range of economic problems—the aftershock of reunification, high unemployment and internal and external pressures to reform its stakeholder system of economic organisation. Some of these developments strike at core assumptions of the German model. This article reviews the extent to which the German model is in danger and teases out the implications for the wider European economy.     

The EU and the Caspian Sea region: An energy partnership?

This paper explores the scope to foster European Union (EU) energy security through stable long-run economic relations with the Caspian Sea region. It is part of a longer-run research programme focusing on the following issues: what are the determinants of the EU long-term energy interests in the Caspian Sea region, and how far does genuine security depend not only on diversifying energy sources geographically but also on stable political and economic structures in the energy-exporting states? An important motivation of this paper is to identify factors relevant to internal and external stability in the Caspian region to assess the impact of current policies and to elucidate policy options that can help increase EU energy security.     

Happiness in transition: An empirical study on Eastern Europe

This paper analyzes the determinants of life satisfaction in a pooled data set of representative individual survey data from seven East European countries collected during the early phase of economic and political transformation using ordered logit models. Those core socio-demographic and economic variables relevant in the US and West European countries have a similar impact on happiness in Eastern Europe under conditions of dramatic economic, political, and social change. The individual effects of variables across countries are not statistically different from the results obtained from the pooled data set. Cross-country differences in aggregate happiness can be explained well by variations in the unemployment rates, the degree of political freedom and the human development index.     

The Euro System as a Laboratory for Neoliberalism: The Case of Spain

Since the 1970s, neoliberalism has evolved from ideology to political agenda, from political program to public policy, and from public policy to a system that replaces democratic control over economic policy with a system of elite economic management. This process of change has been possible due to the endorsement of a meta‐political theory that destroys democracy and legitimizes technocratic despotism, financial deregulation, the debasement of labor into a new proletariat, and the purging of constitutional politics. In this article, we analyze this profound transformation of social and legal relations in the “euro system” and, specifically, in the regressive policies that have emerged from the “crisis” in Spain, a peripheral country of the European Union. The problems in contemporary Europe are a direct consequence of the neoliberal version of European economic unity. Their solution will depend on the capacity of the member states to create a social Europe that strengthens institutional democracy and develops universal systems of social protection. This, in turn, will depend on the ability of citizens to remodel state institutions in accordance with new social goals that place life at the center.     

The Pursuance of Better Quality of life: In the Long Run, Better Quality of Social Life Is the Most Important Factor in Migration

A bstract . A model is developed to explore the relationships between interregional migration and regional variations of quality of life. The model incorporates the impact of the interregional variations of the various aspects of quality of life including economic, political, environmental, social, health and education. The long-run and short-run migration data for 65 major U.S. standard metropolitan statistical areas are used to test the model. The results suggest that unlike the conventional conclusions, economic factors are not so important in motivating interregional migration. Rather, it is shown that in the long-run the pursuance of better quality ot social life turns out to be the most important factor. In the short-run, the results suggest that the pursuance of better environmental quality is the dominant factor in explaining the interregional migration.     

Welfare migration in Europe

The enlargement of the European Union has increased concerns about the role of generous welfare transfers in attracting migrants. This paper explores the issue of welfare migration across the countries of the pre-enlargement European Union and finds a significant but small effect of the generosity of welfare on migration decisions. This effect, however, is still large enough to distort the distribution of migration flows and, possibly, offset the potential benefits of migration as an inflow of mobile labour into countries with traditionally immobile native workers.     

Venture Capital Investments in Europe and Portfolio Firms' Economic Performance: Independent Versus Corporate Investors

Using a new European Commission‐sponsored longitudinal dataset—the VICO dataset—we assess the impact of independent (IVC) and corporate venture capital (CVC) investments on the economic performance of European high‐tech entrepreneurial firms during the period 1992–2010. After controlling for potential sources of endogeneity and selection bias, our results indicate that both IVC and CVC investments boost portfolio firms' economic performance. These effects are mostly due to an increase in real sales value. Moreover, the dynamics of the impact of VC investments on firms’ overall economic performance and its components—real sales value, real fixed assets, and real labor costs—differs depending on the type of investor. Finally, we do not detect any impact related to the syndication of investments by both IVC and CVC investors.     

Economic and spatial determinants of interregional migration in Kazakhstan

In this paper we analyze economic and spatial determinants of interregional migration in Kazakhstan using quarterly panel data on region to region migration in 2008–2010. The main contribution of the paper relates to the ethnic divide in Kazakhstan, which is the home of a big ethnic Russian community, adding to the scarce literature on ethnic differences in migration patterns. Against this background we investigate whether the determinants of interregional mobility depend on ethnicity. In line with traditional economic theory we find that migration is determined by economic factors, first of all wage. As predicted by gravity arguments, mobility is larger between more populated regions and distance has a strong negative impact on migration, indicating high migration-related costs. Most likely caused by stronger family ties and kinship bonds, the deterring effect of distance is higher for ethnic Kazakhs.     

Globalisation,industrial diversification and productivity growth in large European R&D companies

This paper aims to assess the impact of both geographic and industrial diversification of economic activities on the productivity performance of large European R&D Multinational Enterprises (MNEs). Based on the worldwide subsidiaries of these firms, we measure the performance of the firms according to their level of industrial diversification and globalisation that we proxy with the presence and importance of subsidiaries in the EU, North America and Asia–Pacific regions. The sample consists of large R&D firms that represent about 80 % of total European R&D. In general, the results indicate a positive impact from globalisation on firms’ R&D productivity, especially in the US, while a negative impact for industrial diversification is found.     

The Impacts of Redesigning European Agricultural Support

The objective of this paper is to assess the impact of decoupling at the individual member state level in the European Union and in non-member regions of liberalizing domestic support in the EU. Three scenarios are analysed to illustrate the impacts of eliminating or decoupling the European agricultural support. We found that the existing domestic support payments in the EU are indeed coupled to production and hence affect production decisions and distort international trade with adverse effects on the export potential of developing countries as a consequence. Further, the value of this support is capitalised in significant higher land prices in Europe than would otherwise prevail. The scenarios illustrate the economic implications of transforming all domestic support payments (as well as other distorting policies) into a nationally homogenous and fully decoupled payment to all agricultural land, irrespective of a farmer's decision to crop or not. The analysis suggests that it is possible to convert the existing agricultural support into a fully decoupled payment which would not distort international trade and it indicates a way forward to offset the negative impact on land prices. Such a policy would also comply with the WTO rules (i.e. fall within the green box as decoupled income support). The analysis also suggests that such a policy reform could be achieved at somewhat lower budgetary costs as compared with the existing costs of the Common Agricultural Policy.     

Higher education and economic growth: A longitudinal study of European regions 2000–2017

This paper investigates the impact of regional higher education systems (HESs) on economic growth, based upon 284 European regions (NUTS 2) over an 18-year period (from 2000 to 2017). The empirical framework specifically models the heterogeneity of the HESs by including indicators on university concentration, on the size of the HES and on HES performance and other important factors. The analysis is based on a novel and integrated dataset, created by collecting and combining indicators from different data sources (Eurostat, OECD, WHED and InCites). The results reveal that an increase in number of universities in a region is conducive to stronger economic growth within that region. The quality of research and a specialisation in STEM subjects are the primary drivers through which universities impact positively on the regions’ economic development.