Determinants Of Market Integration Research Articles

Spatial Market Integration of Regional Fertilizer Markets in the Philippines and Determinants

Purpose – While several studies focusing on the integration of rice markets in order to lower prices have been conducted, little is understood about the market integration of production inputs. Price variation in production inputs, however, is also a strong factor influencing rice prices. Fertilizer is among the major inputs in rice production, implying that any change in fertilizer prices would have implications on rice prices. As fertilizer tends to register high prices and wide disparities in domestic markets, lowering its price is deemed to be effective in increasing its uptake among rice farmers. This paper attempted to answer the following research questions: (1) How closely integrated are the domestic fertilizer markets? (2) Is there price leadership, and correspondingly, are there price followers? (3) Do higher fertilizer prices exist in more segmented markets? (4) What are the determinants of price differences and market integration across regional fertilizer markets? Design/Methodology/Approach – In order to test for spatial market integration, the correlation coefficient analysis, Granger causality and the Johansen cointegration test were employed. The Johansen cointegration test was performed on 2000-2017 price series data of urea and complete fertilizer of all 16 regions in the Philippines. Findings – It was found that 95% of regional markets for urea and 81% for complete fertilizer were integrated. Rice-producing regions tended to act as price leaders, whereas regions producing less rice were price followers. Results from OLS regression analysis suggest that lower price differences tended to prevail in integrated markets and infrastructures; distance and output difference are among the determinants of market integration. Research Implications – Identifying which markets are integrated is extremely crucial in policy development as it allows the government to fast track its interventions. In integrated markets, any price fluctuation in one market is also likely to happen in another integrated market. It therefore signals to the government in which regions to focus the interventions on, especially in its efforts to stabilize the prices of rice. For instance, it could implement centralized policies in integrated fertilizer markets, and decentralized policies in less integrated ones. Having identified the determinants that influence integration should also allow the government to decide what kind of interventions to implement in order to promote the integration of spatially segregated markets.

The Drivers of Market Integration Among Indigenous Peoples: Evidence From the Ecuadorian Amazon

ABSTRACTKnowledge of the driving forces behind indigenous participation in the market is essential for practitioners intending to integrate conservation and development policies in indigenous territories. Nevertheless, empirical research on the determinants of market integration among indigenous peoples is still scarce. This article uses household survey data and multivariate techniques to examine the drivers of market integration among indigenous groups in the Ecuadorian Amazon. We use multiple measures of market integration, including the sale of crops, timber, and wildlife; the use of credit; and participation in wage labor. The results show that the way in which indigenous peoples integrate into the market depends on their endowments of human, financial, and physical capital. More educated households are able to engage in commercial agriculture and nonagricultural wage work, whereas uneducated poor households in communities in conflict with outsiders are pushed to engage in poorly paid agricultural wage work and (often illegal) timber operations.

Determinants of Market Integration and Price Transmission in Indonesia

The Journal of Southeast Asian Economies (JSEAE) is a peer-reviewed journal focusing on economic issues pertaining to countries in the region – defined as the ten members of the Association of Southeast Asian Nations (ASEAN) and East Timor. JSEAE welcomes articles using orthodox economic approaches as well as those of a more heterodox nature. Oriented at both researchers and policy-makers, the journal seeks to reconcile the ideals of relevance, methodological rigour, and accessibility. Published by the ISEAS – Yusof Ishak Institute tri-annually, JSEAE includes: articles based on original research; research notes; review articles; and book reviews. Once a year, the Journal publishes a Special Issue devoted entirely to a topic of import for the region. Up until April 2013, JSEAE was published as the ASEAN Economic Bulletin (AEB). However, following new developments in the regional and global context, as well as the establishment of new multi-lateral trading agreements including countries in the region, the Directorship of ISEAS and AEB’s Editorial Board decided to change the journal’s name. While its name has changed, JSEAE remains committed to being the premier economic journal for Southeast Asian academicians and policy-makers, as well as anyone with an interest in the region. All research articles in the journal have undergone rigorous peer-review. The process consists of initial screening by the Co-Editors and Associate Editor, followed by double-blind refereeing; two reviewers for articles and one reviewer for research notes.