Effects Of Market Integration Research Articles

A study of the economic growth effects of market integration: An examination of 27 cities in the Yangtze River Delta city cluster.

The city cluster of the Yangtze River Delta is a highly dynamic and competitive economic region in China. The integration of the market across the 27 cities is crucial in driving economic growth in the area. This paper aims to provide policymakers with recommendations on promoting regional integration, enhancing the structure, and improving overall performance. By utilizing the benefits and resources of each community more effectively, greater economic gains can be achieved. The findings of this study can also be applied to other Chinese towns or business areas. Market integration is a necessary foundation for regional integration, as it enables the seamless movement of goods and factors throughout the region while simultaneously reducing entry barriers and supporting the creation of a unified market. Unfortunately, the "vassal economy" model has impeded the region's economic growth. The integration of regional markets is crucial for economic growth. However, it is equally important to create industrial clusters with central towns as their hubs. The Yangtze River Delta urban agglomeration is a prime example of one of six world-class city clusters demonstrating how market integration can result in high-quality economic progress. The paper's primary discoveries are threefold: firstly, there has been a progressive elevation in the level of market integration among the 27 cities within the Yangtze River Delta city cluster, characterized by increasingly intimate connections concerning trade, investment, and population mobility. Secondly, this heightened market integration exerts a catalytic impact on the real economic growth of the Yangtze River Delta city cluster, particularly concerning regional industrial restructuring, transformation, and upgrading. Finally, market integration is poised to expedite the industrial division of labor and synergistic development between the cities, thus promoting a concentration of advanced manufacturing and new industries in the central cities and furthering the development of profitable industries in the central individual cities.

Can high-speed railway promote regional market integration? Evidence from China

The rapid development of high-speed railways is an important manifestation of transportation modernization in China, and has a huge influence on the integration of China's regional market. The predominance of passenger transport in China's high-speed rail (HSR) network makes it difficult to explain the influence of HSR on regional market integration issues in the previous research paradigm of economic geography based on the iceberg costs theory. Therefore, this paper constructs a conceptual framework of HSR affecting regional market integration in terms of market access, information flow, and substitution transportation. It also empirically tests the HSR effect of market integration using prefecture-level data from 2003 to 2013 in China. The results show that HSR has a significantly positive effect on China's regional market integration, and the three influencing mechanisms exist. However, the influence of HSR on regional market integration is different due to the heterogeneity of economic development and population scale.

Market integration and urban air quality: Evidence from the Yangtze River Economic Belt of China

Market segmentation led by “beggar-thy-neighbor” and “local protectionism” among local governments is the deep institutional reason of environmental pollution. Therefore, eliminating market barriers and accelerating regional market integration are important way to achieve green development. This paper develops a theoretical model for analyzing the relationship between market integration and air quality by introducing inter-regional trade cost and game behavior. Based on the panel data of 101 prefecture-level and above cities in the Yangtze River Economic Belt of China, we verify the effect and its mechanism of market integration on air quality. The results show that regional market integration is conducive to improving urban air quality, which is still supported by the robustness test. In terms of regional differences, market integration has a greater effect on air quality in the downstream than in the upstream and midstream. Market integration improves air quality by strengthening scale effect, accelerating industrial structure upgrading and promoting technological progress. Moreover, Environmental regulation and environmental performance assessment facilitates strengthening the air quality improvement effect of market integration. We suggest that China should continually promote market integration in the Yangtze River Economic Belt, strengthen environmental regulation, and establish a reasonable performance evaluation system, so as to build a green development linkage mechanism between environmental protection and economic growth.

Spatial effects of market integration on the industrial agglomeration of agricultural products: evidence from China.

The spatial effects of agricultural market integration on industrial agglomeration are an important field of regional economic. This paper collected the data of agricultural market integration and industrial agglomeration in 31 provinces in China from 2010 to 2019, analyzed the spatial effects of the two by constructing a dynamic spatial Dubin model, and explored its long-term and short-term effects of the spatial effects. The results show the following: (1) the primary terms of agricultural market integration were negative and the secondary terms were positive. The impact of agricultural market integration on local industrial agglomeration had a "U-shaped" characteristic. Whether in the short-term or long-term, there was a significant direct effect of "suppression to promotion." (2) The agricultural market integration had a spatial spillover effect on industrial agglomeration in the neighboring areas. This effect had an "inverted U-shaped" characteristic. Whether in the short-term or long-term, there was a prominent spatial spillover effect of "promotion to suppression." (3) For direct effects, the short-term direct effects of agricultural market integration on industrial agglomeration were - 0.0452 and 0.0077, and the long-term direct effects were - 0.2430 and 0.0419. For spatial spillover effects, the short-term spatial spillover effects were 0.0983 and - 0.0179, and the long-term spatial spillover effects were 0.4554 and - 0.0827. The long-term effects were greater than the short-term effects. This paper provides empirical evidence for the effects of agricultural market integration on industrial agglomeration in different regions, and exploring the development of agricultural agglomeration in the long-term.

The effects of market integration on regional energy efficiency and mechanism

The effects of market integration on regional energy efficiency and mechanism

The effects of lifestyle change on indicators of cardiometabolic health in semi-nomadic pastoralists.

Non-communicable disease risk and the epidemic of cardiometabolic diseases continue to grow across the expanding industrialized world. Probing the relationships between evolved human physiology and modern socioecological conditions is central to understanding this health crisis. Therefore, we investigated the relationships between increased market access, shifting subsistence patterns and cardiometabolic health indicators within Daasanach semi-nomadic pastoralists who vary in their engagement in traditional lifestyle and emerging market behaviors. We conducted cross-sectional socioecological, demographic and lifestyle stressor surveys along with health, biomarker and nutrition examinations among 225 (51.6% female) Daasanach adults in 2019-2020. We used linear mixed-effects models to test how differing levels of engagement in market integration and traditional subsistence activities related to blood pressure (BP), body composition and blood chemistry. We found that systolic and diastolic BP, as well as the probability of having high BP (hypertension), were negatively associated with distance to market, a proxy for market integration. Additionally, body composition varied significantly by socioeconomic status (SES), with significant positive associations between BMI and body fat and higher SES among adults. While evidence for evolutionary mismatch and health variation have been found across a number of populations affected by an urban/rural divide, these results demonstrate the effects of market integration and sedentarization on cardiometabolic health associated with the early stages of lifestyle changes. Our findings provide evidence for the changes in health when small-scale populations begin the processes of sedentarization and market integration that result from myriad market pressures.

The Investment Effects of Market Integration: Evidence From Renewable Energy Expansion in Chile

We study the investment effects of market integration on renewable energy expansion. Our theory highlights that market integration not only improves allocative efficiency by gains from trade but also incentivizes new investment in renewable power plants. To test our theoretical predictions, we examine how recent grid expansions in the Chilean electricity market changed electricity production, wholesale prices, generation costs, and renewable investments. We then build a structural model of power plant entry to quantify the impact of market integration with and without the investment effects. We find that the market integration in Chile increased solar generation by around 180%, saved generation costs by 8%, and reduced carbon emissions by 5%. A substantial amount of renewable entry would not have occurred in the absence of market integration. Our findings suggest that ignoring these investment effects would substantially understate the benefits of market integration and its important role in expanding renewable energy.

Market Integration, Industrial Structure, and Carbon Emissions: Evidence from China

Against the backdrop of China’s carbon emission reduction targets and the promotion of the construction of a unified domestic market, what kind of carbon emission effect has market integration had in weakening regional barriers and optimizing resource allocation? This paper adopts a two-way fixed effects analysis based on China’s provincial panel data from 2003 to 2019. It uses a mediation model to explore the relationship between market integration and carbon emissions. Furthermore, industrial rationalization and upgrade are the basis for examining whether a competitive or cooperative relationship exists between the carbon emission effects generated and promoting market integration between regions. The study finds a negative relationship between market integration and carbon emissions. In addition, there is significant heterogeneity in the effect of market integration on carbon emissions, and the influence effect is mainly in central China; industrial rationalization can play an enhanced role in the process of the negative impact of market integration on carbon emissions, further enhancing the negative contribution of market integration to carbon emissions. However, market integration can weaken its negative impact on carbon emissions with the industrial upgrade, and there may still be invisible barriers between regions in promoting market integration barriers.

Trade Openness, Inequality, and Democracy in East Asia

Has trade openness made East Asian countries more or less democratic? Although numerous studies have explored the economic effects of market integration in the region, few have systematically examined the political consequences of trade liberalization. This research extends previous work by empirically investigating not only direct but also indirect links between trade globalization and democracy in East Asia. I find that the direct negative effect of trade integration on democracy is mitigated by its indirect positive impact via inequality. Empirical evidence is provided by the three-stage least squares method and pooled time-series data from 1975 to 2015 for 13 East Asian states.

Market Integration and Regional Innovation in China: Evidence from the Yangtze River Delta Region

Market integration is an important tool for China’s regionally coordinated economic development. At the same time, China is implementing an innovation-driven development strategy. Therefore, the way the market integration affects regional innovation is of great significance to analyze this problem. The panel data of 27 cities in the Yangtze River Delta region in China with the highest degree of economic integration from 2009 to 2018 are used to investigate the impact of market integration (MI) on regional innovation (RI). The main findings are as follows: the first-order lag term of RI is significantly positive, and RI has certain path dependence. In this regard, MI has a positive impact on RI and promotes RI. The estimated coefficient of MI is significantly positive and has a positive impact on RI and promotes RI. This provides a reference for promoting RI through MI. The contributions of the paper are threefold: (1) This paper examines the impact of MI on RI to provide policy implications for the coordinated development of innovation between regions. (2) The relative price method is adopted to measure the MI, which covers 16 kinds of commodities, covering a wider range than does the traditional method. (3) This paper uses the generalized method of moments (GMM) to test the effect of MI on RI for the first time.

Polycentric agglomeration, market integration and green economic efficiency

The green economy is particularly important in China's pursuit of high-quality economic growth. Adopting China's provincial balance panel data from 2000 to 2017, this article attempts to reveal the impact of polycentric agglomeration on green total factor productivity, its action path, and the synergistic effect of market integration by employing instrumental variable estimation and a mediating effect model. A significant inverted U-shaped relationship is found between polycentric agglomeration and green total factor productivity, and the polycentric agglomeration in most provinces has not exceeded the inflection point. Furthermore, the mediating effect shows that functional urban specialization and technological innovation are effective paths through which polycentric agglomeration enhances green total factor productivity. Finally, market integration contributes to green total factor productivity, and a significant positive synergistic effect exists between market integration and polycentric agglomeration. Therefore, this paper argues that China should continue to develop polycentric agglomeration and accelerate the process of market integration to promote green economic efficiency.

Research on Economic Growth Effect of Market Integration in Twin Cities Economic Circle in Chengdu-Chongqing Region

Research on Economic Growth Effect of Market Integration in Twin Cities Economic Circle in Chengdu-Chongqing Region

The effects of market integration during the first globalization: a multi-market approach

AbstractThis paper is a first attempt to measure the effects of international market integration on world trade and welfare in the ``long nineteenth century”. We run a multi-market partial equilibrium model, which takes into account the interactions between route-specific changes in trade costs, for the two most traded commodities, cotton and wheat. The collapse in trade costs accounted for 60 percent of the growth of trade for cotton and for 40 percent for wheat. As expected, welfare gains were larger for small open economies, but they were substantial also for large countries, with big differences determined by trade policies.

Asset prices in segmented and integrated markets

This paper evaluates the effect of market integration on prices and welfare, in a model where two Lucas trees grow in separate regions with similar investors. We find equilibrium asset price dynamics and welfare both in segmentation, when each region holds its own asset and consumes its dividend, and in integration, when both regions trade both assets and consume both dividends. Integration always increases welfare. Asset prices may increase or decrease, depending on the time of integration, but decrease on average. Cross-asset correlation is zero or negative before integration, but significantly positive afterwards, explaining some effects commonly associated with financialisation.

Market integration and environmental quality: Evidence from the Yangtze river delta region of China

Based on the panel data of 18 prefecture-level and above cities in the Yangtze River Delta region of China during the period of 2007–2016, this paper uses a relative price approach to calculate the degree of market integration (segmentation), and further adopts the dynamic spatial panel Durbin model and the generalized spatial two-stage least squares method to investigate the effect and its mechanism of market integration on environmental pollution. The results show that the degree of market integration and the total emissions, per capita emissions, and emission intensity of three types of pollutants (i.e., sulfur dioxide, industrial wastewater, and industrial smoke and dust) all show an inverted “U-shaped” curve relationship. When market integration exceeds a certain critical level, market integration will have an emission-reduction effect on these three types of pollutants. Most cities in the Yangtze River Delta region are in an emission-reduction state of market integration. Market integration facilitates strengthening the emission-reduction effects of technological innovation, environmental regulation, and energy efficiency. Moreover, both environmental pollution and market integration have a significant spatial spillover effect. The market integration in neighboring regions is conducive to reducing local pollution emissions. We suggest that China should accelerate market-oriented reform and promote regional market integration, so as to make full use of the emission-reduction effect of market integration.

How does urban agglomeration integration promote entrepreneurship in China? Evidence from regional human capital spillovers and market integration

Using firm birth records and startup data matched with cities' characteristics, this paper analyzes nearly 300 prefecture-level cities to examine the role of human capital and market access in shaping the economic geography of innovation-driven entrepreneurship in China. We document strong positive entrepreneurial effects of local human capital resources and market size as well as market integration and human capital spillovers from mega-urban agglomerations of integrated cities. Our estimates point to an elasticity of innovation-driven entrepreneurship with respect to human capital spillovers of 0.50–0.79. The elasticity with respect to market integration is 0.53–0.89. Our results also suggest heterogeneous human capital spillover and market integration effects across urban agglomerations. These effects are more robust in first-tier urban agglomerations because first-tier urban agglomerations have a stronger economic base and greater connectivity. Strong human capital spillover and large gains from access to surrounding economic mass jointly highlight the integrated development of mega-urban agglomerations in China. We discuss policy implications that concern promotion of local innovation-driven entrepreneurship by strengthening intercity coordination, building transportation and social infrastructure, and improving urban management.

Research on the effects of market integration on carbon emissions

PurposeThe purpose of this paper is to analyze the linear and nonlinear effects of market integration on carbon emissions and explore the direct and indirect paths of market integration on carbon emissions through path analysis.Design/methodology/approachThe authors first conduct a measurement and contrastive study of the market integration and carbon emissions of China’s 28 provinces from year 1995 to 2015. Then, the linear effect of market integration on carbon emissions is analyzed by using the fixed-effect model. Next, based on the path analysis method, the direct and indirect paths of market integration’s impact on carbon emissions are explored. Finally, the panel threshold regression model is used to evaluate the effect of market integration on carbon emissions under different situations of geographic distance.FindingsThe results show that first, the improvement of market integration can increase carbon emissions in the form of a linear relationship. Second, market integration not only has a direct and positive impact on the carbon emissions, but also has an indirect and positive impact on carbon emissions through the level of economic development, and a negative impact on carbon emissions through technological level. Third, an increase in market integration can reduce its positive effect on carbon emissions, but the improvement of economic growth and technology level can both enhance the positive effect of market integration on carbon emissions.Research limitations/implicationsThis paper focuses on the impact of market integration on carbon emissions in 30 provinces in China, while, the authors do not conduct a comparative analysis of different regions, so there are certain limitations. In addition, policy interaction between regional governments is also a key factor affecting carbon emissions, but this paper does not consider the effect of policy interaction, future follow-up research will try to incorporate it into the analytical models.Practical implicationsAn important practical implication of this research is that market integration should be regarded highly in China’s energy conservation and emission reduction efforts. The research results have important reference value for policy authorities to formulate relevant policies. That is, the government can play a more active role in the process of integration through breaking the regional blockade and interest barriers to comprehensively improve resource utilization efficiency and technical level, and ultimately achieve regional low-carbon development.Originality/valueThis paper explores the effects of market integration on China’s carbon emissions based on different methods and perspectives, and confirms that market integration plays a vital role in China’s carbon emissions through economic growth and technological progress. Notably, based on the studied results, some specific and practical suggestions are proposed in this paper so as to reduce carbon emission and realize the sustainable development of economy and society in China.

How Does Urban Agglomeration Integration Promote Entrepreneurship in China? Evidence from Regional Human Capital Spillovers and Market Integration

Using firm birth records and startup data matched with cities’ characteristics, this paper analyzes nearly 300 prefecture-level cities to examine the role of human capital and market access in shaping the economic geography of innovation-driven entrepreneurship in China. We document strong positive entrepreneurial effects of local human capital resources and market size as well as market integration and human capital spillovers from mega urban agglomerations of integrated cities. Our estimates point to an elasticity of innovation-driven entrepreneurship with respect to human capital spillovers of 0.50-0.79. The elasticity with respect to market integration is 0.53-0.89. Our results also suggest heterogeneous human capital spillover and market integration effects across urban agglomerations. These effects are more robust in first-tier urban agglomerations because first-tier urban agglomerations have a stronger economic base and greater connectivity. Strong human capital spillover and large gains from access to surrounding economic mass jointly highlight the integrated development of megaurban agglomerations in China. We discuss policy implications that concern promotion of local innovation-driven entrepreneurship by strengthening intercity coordination, building transportation and social infrastructure, and improving urban management.

Infrastructure and well-being: employment effects of Jamuna bridge in Bangladesh

ABSTRACTWe evaluate the impact of the Jamuna multipurpose bridge, the largest physical infrastructure in Bangladesh, on employment opportunities. We particularly focus on labour market integration effects using survey data that provide information on current and retrospective assessments of household situation in two adjacent districts connected by the bridge. Using a quasiexperimental framework of the canonical difference-in-difference regression methodology, we analyse the impact of this infrastructure on employment and job transition patterns. We find that, along with decreasing household unemployment, the bridge construction facilitated farm-to nonfarm shift of employments. Also, the treatment effects are heterogeneous across age groups.

Agents' beliefs and economic regimes polarization in interacting markets.

In the present paper, a model of a market consisting of real and financial interacting sectors is studied. Agents populating the stock market are assumed to be not able to observe the true underlying fundamental, and their beliefs are biased by either optimism or pessimism. Depending on the relevance they give to beliefs, they select the best performing strategy in an evolutionary perspective. The real side of the economy is described within a multiplier-accelerator framework with a nonlinear, bounded investment function. We study the effect of market integration, in particular, of the financialization of the real market. We show that strongly polarized beliefs in an evolutionary framework can introduce multiplicity of steady states, which, consisting in enhanced or depressed levels of income, reflect and reproduce the optimistic or pessimistic nature of the agents' beliefs. The polarization of these steady states, which coexist with an unbiased steady state, positively depends on that of the beliefs and on their relevance. Moreover, with a mixture of analytical and numerical tools, we show that such static characterization is inherited also at the dynamical level, with possibly complex attractors that are characterized by endogenously fluctuating pessimistic and optimistic prices and levels of national income, with the effect of having several coexisting business cycles. This framework, when stochastic perturbations are included, is able to account for stylized facts commonly observed in real financial markets, such as fat tails and excess volatility in the returns distributions, as well as bubbles and crashes for stock prices.