International Market Integration Research Articles

INTEGRASI PASAR BERAS INDONESIA DENGAN PASAR BERAS INTERNASIONAL

The food crisis that was triggered by climate change has swept the world lately. Climate change is affecting the pattern of the world that led to changes in the pattern of agricultural production as well. Changes in the pattern of production results in world food production schedule was delayed, and along with these changes, many countries export so that world food prices increase. Rising world food prices starting from US and then spread in the other parts of the world, including Indonesia. However, it is unknown how big relatedness of International food prices changes with food prices in Indonesia. This paper aims to analyze the connectedness between domestic rice market with international market, how long shock in international rice impact on the domestic market and to analyze interlinkage in domestic primary rice market. Using data rice price in indonesia and international rice price of FAO, writer found that market rice integrated both in domestic and foreign, so the fluctuations in both markets would affect each other Keywords: Food Crisis, Production Pattern, Domestic and International Market Integration

INTEGRASI PASAR BERAS INDONESIA DENGAN PASAR BERAS INTERNASIONAL

The food crisis that was triggered by climate change has swept the world lately. Climate change is affecting the pattern of the world that led to changes in the pattern of agricultural production as well. Changes in the pattern of production results in world food production schedule was delayed, and along with these changes, many countries export so that world food prices increase. Rising world food prices starting from US and then spread in the other parts of the world, including Indonesia. However, it is unknown how big relatedness of International food prices changes with food prices in Indonesia. This paper aims to analyze the connectedness between domestic rice market with international market, how long shock in international rice impact on the domestic market and to analyze interlinkage in domestic primary rice market. Using data rice price in indonesia and international rice price of FAO, writer found that market rice integrated both in domestic and foreign, so the fluctuations in both markets would affect each other Keywords: Food Crisis, Production Pattern, Domestic and International Market Integration

Economic integration across Latin America: Evidence from labour markets, 1990–2013

AbstractCombining macroeconomic and microeconomic data and three indicators of international market integration, this paper assesses the degree to which Latin American labour markets are integrated. The results suggest that relative to East Asia, Latin American labour markets are somewhat more integrated, but considerable differences across countries persist. In addition, the evidence indicates that the degree of labour market integration across Latin American borders is significantly less than that of labour markets within the United States in two of the three indicators. These differences may suggest opportunities for efficiency gains from further labour market integration.

ANALISIS FUNDAMENTAL MAKRO DAN INTEGRASI PASAR SAHAM DUNIA DENGAN BURSA EFEK INDONESIA

This study is a combination of previous studies about a relationship between the stock market with a macro economic performance and research on the international capital market integration. There is a strong relationship between the stock price with a macro-economic performance, in which the macro economic variables according Tandelilin (2010.343) include Gross Domestic Product (GDP), the growth rate of inflation, interest rates and currency exchange rates. Research on the international capital market integration has been done because of the domestic capital flows over the country and their potential gains from international diversification. Macroeconomic variables used in this study was limited to GDP growth, inflation, interest rate of Bank Indonesia Certificates ( SBI ) and the value of the US dollar against the rupiah exchange rate, and stock index that used are Kuala Lumpur Stock Index, Thailand stock index and Singapore.
 
 The objective of this paper are to to analyze the movement of macroeconomic and examine the degree of four stock market integration in South East Asia based on data from 2010 to 2014 with the period of observation January 2010 – December 2014. Analysis model regression multivariable is used to detect economic factor (GDP, inflation, interest rate and exchange rate) and south East Asia stock market (KLCI, STI and STI) influence toward movement of the Indonesian composite stock market index in Indonesian Capital Market partially and simultaneous. 
 
 The results of this research indicate that GDP, inflation, interest rate, exchange rate, KLCI, SETI and STI have significant effect on the IHSG. Based on the test results the coefficient of determination, the value of the Adjusted R Square of 96,9 % while the remaining 3,1 % is influence by other variables not included in this research. Partially GDP, Inflation and STI have insignificant positive effect on IHSG, interest rate have significant negative effect on IHSG. While KLCI and SETI have significant positive effect

Paradigms for EU Law and the Limits of Delegation. The Case of EU Agencies

Abstract This article questions the idea that the EU is a pure regulatory power based on supranational delegation of competence from the Member States. It claims the insufficiency of this single paradigm to explain the developments of EU law and the need to integrate it with recognition of the constitutional foundations of EU law. The analysis demonstrates this by focusing on a specific case study of institutional design in the internal market integration: the delegation of powers to EU agencies. By recognising the judicial evolution of the so-called Meroni doctrine concerning the non-delegation of powers to EU agencies, the article unveils that, legally speaking, the enhancement of EU agencies’ powers takes place in the autonomous constitutional framework of the EU legal order. This constitutional foundation of EU law shall therefore complement the supranational delegation paradigm. Only in this wider approach can the legitimacy of EU agencies’ powers be framed and accommodated in the composite nature of the EU as a Union of Member States. On these grounds, the final remarks highlight the need for a more comprehensive paradigm for EU law that can explain these different aspects of EU law under a common approach based on a wider public law discourse.

Achieving sustainable irrigation water withdrawals: global impacts on food security and land use

Unsustainable water use challenges the capacity of water resources to ensure food security and continued growth of the economy. Adaptation policies targeting future water security can easily overlook its interaction with other sustainability metrics and unanticipated local responses to the larger-scale policy interventions. Using a global partial equilibrium grid-resolving model SIMPLE-G, and coupling it with the global Water Balance Model, we simulate the consequences of reducing unsustainable irrigation for food security, land use change, and terrestrial carbon. A variety of future (2050) scenarios are considered that interact irrigation productivity with two policy interventions— inter-basin water transfers and international commodity market integration. We find that pursuing sustainable irrigation may erode other development and environmental goals due to higher food prices and cropland expansion. This results in over 800 000 more undernourished people and 0.87 GtC additional emissions. Faster total factor productivity growth in irrigated sectors will encourage more aggressive irrigation water use in the basins where irrigation vulnerability is expected to be reduced by inter-basin water transfer. By allowing for a systematic comparison of these alternative adaptations to future irrigation vulnerability, the global gridded modeling approach offers unique insights into the multiscale nature of the water scarcity challenge.

Does institutional ownership matter for international stock return comovement?

We study the link between international stock return comovements and institutional investment. We test whether the rise of institutional ownership has increased cross-country correlations and decreased cross-industry correlations. Using stock-level institutional holdings across 45 countries during the 2001–2010 period, we find that industry and global factors are relatively more important the country factors in explaining stock return variation among stocks with higher institutional ownership. Industry diversification strategies are more beneficial than country diversification strategies for stocks with high institutional ownership. We show that cross-border portfolio investment is a powerful force of international capital market integration and convergence of asset prices.

Coordination and uncertainty in strategic network investment: Case on the North Seas Grid

The notion of developing a transnational offshore grid in the North Sea has attracted considerable attention in the past years due to its potential for substantial capital savings and increased scope for cross-border trade, sparking a European-wide policy debate on incentivizing integrated transmission solutions. However, one important aspect that has so far received limited attention is that benefits will largely depend on the eventual deployment pattern of electricity infrastructure which is currently characterized by severe locational, sizing and timing uncertainty. Given the lack of coordination between generation and network developments across Europe, there is a real risk for over-investment or a premature lock-in to options that exhibit limited adaptability. In the near future, important choices that have to be made concerning the network topology and amount of investment. In this paper we identify the optimal, in terms of reduced cost, network investment (including topology) in the North Seas countries under four deployment scenarios and five distinct policy choices differing in the level of offshore coordination and international market integration. By drawing comparisons between the study results, we quantify the net benefit of enabling different types of coordination under each scenario. Furthermore, we showcase a novel min–max regret optimization model and identify minimum regret first-stage commitments which could be deployed in the near future in order to enhance strategic optionality, increase adaptability to different future conditions and hence reduce any potential sub-optimality of the initial network design. In view of the above, we put forward specific policy recommendations regarding the adoption of a flexible anticipatory expansion framework for the identification of attractive investment opportunities under uncertainty.

Bold and newly Independent, or Isolated and Cast Adrift? The Implications of Brexit for Intellectual Property Law and Policy

AbstractWhat happens when a breakdown in relations results in mutually possessed objectives becoming harder to achieve? This article explores the consequences of the UK's withdrawal from the EU for intellectual property (IP) law and policy. Compared with other fields such as Economic and Monetary Union and the development of the EU's ‘social chapter’, the UK has been a supportive and proactive player in internal market integration, particularly pertaining to IP protection. As a result of ‘Brexit’, the EU may find that the impetus for further harmonization and integration in this field is lost, such as with the EU unitary patent. However, the consequences for the UK are likely to be more severe – a loss of influence, both over laws that govern it and in exporting IP norms internationally, as well as a loss of access to certain protections, agencies and market sectors that are within the UK's economic interests.

Regime switching behavior of Indian VIX and its time dependent correlation with select developed economies

This paper investigates the international financial market integration as a trigger for regime switching behavior of Indian implied volatility index and its regime-dependent conditional correlations with the selected developed markets. The 2-state dynamic regression model reveals two different regimes using state-dependent variables during the time period 2009 to 2016. The results found that Hong Kong and US markets have a significant effect on the Indian market during highly volatile state, and there is a clear decoupling effect among these markets when the Indian market is stable. The predicted turning point probabilities indicate that the bull market state is persistent.

Financial market integration, exchange rate policy, and the dynamics of business and employment in Korea

We study the consequences of different degrees of international financial market integration and exchange rate policies in a calibrated, medium-scale model of the Korean economy. The model features endogenous producer entry into domestic and export markets and search-and-matching frictions in labor markets. This allows us to highlight the consequences of financial integration and the exchange rate regime for the dynamics of business creation and unemployment. We show that, under flexible exchange rates, access to international financial markets increases the volatility of both business creation and the number of exporting plants, but the effects on employment volatility are more modest. Pegging the exchange rate can have unfavorable consequences for the effects of terms of trade appreciation, but more financial integration is beneficial under a peg if the economy is subject to both productivity and terms of trade shocks. The combination of a floating exchange rate and internationally complete markets would be the best scenario for Korea among those we focus on.

Changing risk exposures of cross-listed firms and market integration

A standard finding is that risk exposures of companies that cross-list tend to increase against the market in which they list, a change typically associated with a decline in the cost of capital. However, this finding is predicated on the assumption that the home and foreign market co-movements are stable over time. By contrast, another common finding is that risk exposures across market indices have increased over time due to international market integration. In this paper, I ask whether the firm-level findings for changing risk exposures are due to the more general changes in market co-movements. Indeed, for a panel of cross-listed firms in the U.S., I find that 72% do not find evidence of breaks in their relationships beyond those derived from their home markets. This finding suggests that the apparent increase in risk exposures for cross-listed firms arises from general market integration trends. Moreover, the remaining 28% of firms tend to have significant breaks after cross-listing, be younger, and have home markets with lower government regulation.

Scenarios of land system change in the Lao PDR: Transitions in response to alternative demands on goods and services provided by the land

Sudden and gradual land use changes can result in different socio-ecological systems, sometimes referred to as regime shifts. The Lao PDR (Laos) has been reported to show early signs of such regime shifts in land systems with potentially major socio-ecological implications. However, given the complex mosaic of different land systems, including shifting cultivation, such changes are not easily assessed using traditional land cover data. Moreover, regime shifts in land systems are difficult to simulate with traditional land cover modelling approaches. A novel simulation approach was employed that focused on simulating changes in land systems rather than focusing on land cover. With the CLUmondo model we simulated three scenarios of potential developments between the years 2010 and 2030 assuming different degrees of international market integration and sustainable growth objectives. Although all scenarios show a decline of shifting cultivation systems, the respective orientation of markets and land governance resulted in strongly different land change trajectories. The land system changes are strongly location dependent and different trajectories are found in different parts of the country. Some scenarios show clear elements of land sparing with intensification of land management in the valleys and re-growth of forest on sloping land. Other scenarios show elements of enhanced multi-functionality. The approach addressed methodological challenges in simulating land system regime shifts and complex mosaic landscapes while accounting for societal demands for different types of goods and services from land systems. The land systems approach allows a nuanced representation of different types of forests and agricultural systems such as shifting cultivation and commercial agricultural plantations. Simulation results contribute to a debate about desired future land use on the national scale including its environmental and socio-economic implications.

Twenty-First-Century Globalization and Illegal Migration

Also labeled undocumented, irregular, and unauthorized migration, illegal migration places immigrants in tenuous legal circumstances with limited rights and protections. We argue that illegal migration emerged as a structural feature of the second era of capitalist globalization, which emerged in the late twentieth century and was characterized by international market integration. Unlike the first era of capitalist globalization (1800 to 1929), the second era sees countries limiting and controlling international migration and creating a global economy in which all markets are globalized except for labor and human capital, giving rise to the relatively new phenomenon of illegal migration. Yet despite rampant inequalities in wealth and income between nations, only 3.1 percent of all people lived outside their country of birth in 2010. We expect this to change: threat evasion is replacing opportunity seeking as a motivation for international migration because of climate change and rising levels of civil violence in the world’s poorer nations. The potential for illegal migration is thus greater now than in the past, and more nations will be forced to grapple with growing populations in liminal legal statuses.

Economic integration and stock market dynamic linkages: evidence in the context of Australia and Asia

ABSTRACTCountries are becoming economically integrated and it is contended that this will also lead to their financial markets becoming integrated. This contention is important since international financial market integration diminishes portfolio diversification benefits and creates contagion risk. We test this contention in this article in the context of the Australasian region. Australia and Asia have experienced very significant economic integration through a rapid growth in their bilateral trade. We utilize a battery of econometric techniques – cointegration, asymmetric generalized dynamic conditional correlations and panel regression models. As expected, we find that trade intensity significantly drives the interdependence between their stock markets in both the short run and the long run. Thus, given the ever increasing economic integration in this region, this finding implies that their stock markets face the risk of contagion, and that investors in these markets would also be confronted with the prospect of lower diversification benefits.

Sustainable Recruitmentt of Foreign-Educated Nurses: Ethical and Work Related Issues. The Case of Finland

The international migration – and recruitment of health professionals has gained momentum in the last fifteen years, becoming a matter of international concern. Work-related issues – i.e. working conditions, integration and retention of foreign-educated health professionals – have emerged along with (old) issues of ethical recruitment. This paper focuses on the recruitment of foreign-educated nurses (FENs) and contributes to the current debate on approaches to international recruitment and labour market integration of health professionals by introducing the concept of ‘sustainable recruitment’, which binds together ethical recruitment and work-related issues. This study aims to investigate the ways these aspects actually or potentially shape current approaches of international recruitment. A qualitative approach is used to study the case of Finland, which is an emerging destination country of FNEs and that has started to recruit nurses both from within the European Union and in the Philippines. In particular the paper presents and discusses the results of an empirical investigation carried out in Finland in 2015 that was aimed at exploring whether and how private and public health care organizations and private recruitment agencies are responding to issues of ‘sustainable recruitment’ while recruiting FENs internationally.

Research on the key success factors of reverse innovation of the latecomer engineering and technical services enterprises

Purpose – Reverse innovation plays an important role in the innovation catch-up by latecomer enterprise. With the development of economic globalization, reverse innovation of the latecomer enterprise research has received increased attention day by day. The purpose of this paper is to reveal the key success factors and the realization mechanism of reverse innovation of the latecomer engineering and technical services enterprise. Design/methodology/approach – This paper adopts the grounded theory analysis as the research method, by analyzing the phenomenon, collating the results, mining through the systematic data and verifying the theory temporarily. Therefore, it is ideal for the research to build the theory by analyzing the phenomenon. Before the serious coding begins, the reliability of coders is first examined. Coders extract some sample as the first test sample; then, three coders code according to the description and requirements and calculate the coding results according to the formulas that the noted scholar Holsti has proposed. Then, the authors perform the coding three times that include open coding, axial coding and selective coding, and then, the key factor model of reverse innovation of the engineering and technical service enterprise is refined. Findings – The investigation reveals that technology localization, connection with the international market and industrial chain integration are the key success factors of reverse innovation of the latecomer engineering and technological service enterprise. Meanwhile, the latecomer enterprise gives full attention to local comprehensive comparative advantage to carry out technology localization during the reverse innovation. The diversified international coupling mechanism is an important support for technology localization. The engineering and technical service enterprise needs to pay attention to the service chain of the vertical integration in the process of reverse innovation. Originality/value – The paper enriches the related research of reverse innovation based on a new industry and provides management support for innovation catch-up of the latecomer enterprises that have a big technological gap when compared with the multi-national companies.

Getting the Story Right: How You Should Choose between Different Interpretations of the European Crisis (And Why You Should Care)

The European crisis has many causes. Worse, the different causes are mutually reinforcing. National economies lost competitiveness within the single currency, governments and households lived beyond their means, banks and other financial firms moved capital across borders and then called it back home again in a fit of panic. Europe is suffering as a consequence. European policy-making is suffering as well. With so many ‘causes’, politicians are dividing their attention across different and at times competing remedies. Europe appears to be ‘muddling through’ rather than acting decisively as a result. This paper argues that European policymakers should focus their attention on financial causal mechanisms. Although there is some truth to claims about lost competitiveness and excessive borrowing, a close focus on financial markets promises to offer the greatest leverage over the largest number of national economies. A close focus on finance also offers a clear choice between competing policy agendas: Europe's politicians must choose either to accept a renationalization of finance or they must embrace reforms necessary to stabilize international financial market integration. Only once that choice is made, and the necessary policy agendas are put in place, should politicians again turn their focus to issues of second-order (if still significant) importance related to market structural reform, fiscal consolidation, or asset market regulation.

The Unitary Patent: New Rules for Internal Market Lawmaking?

The EU’s patent plans look back on a long history of ups and downs. The ECJ has now dealt with different aspects of those plans, including the latest model that is now poised to enter into force, at three different occasions. That jurisprudence shifts from strict to relaxed, which invites speculation as to the reasons for that shift. More importantly however, the recently relaxed approach may have unforeseen and unwanted repercussions on integration dynamics in general: The novel legislative method of the UP Regulation might be a politically attractive, but legally dangerous tool for pushing flexibility in internal market integration far beyond the scope, possibilities and intention of territorial differentiation hitherto known under the classic mechanism of enhanced cooperation. In fact, the novel method complements territorial flexibility by allowing for flexibility in substantive law. This offers new possibilities, but also comes at higher costs for the unity, stability and coherence of EU integration and EU law.

Risk Diversification Between Stock Markets In Germany And Bosnia And Herzegovina

Abstract The integration of global equity markets has been a well-studied topic in the last few decades, particularly after stock market crashes. Most studies have focused on developed markets such as the US, Western Europe and Japan. The findings were that the degree of international co-movements among stock prices has substantially increased in the post-crash regime. In this paper we research the co-movements of German and Bosnian stock markets during and after the recent economic and financial crisis. International market integration means that assets of equal risk provide the same expected returns across integrated markets. This means fewer opportunities for risk diversification if the markets are integrated. It is also believed that stock market indices of integrated markets move together over the long run with the possibility of short-run divergence. There is considerable academic research on the benefits of international diversification. Investors who buy stocks in domestic as well in foreign markets seek to reduce risk through international diversification. The risk reduction takes place if the various markets are not perfectly correlated. The increasing correlation among markets during and after the crises has restricted the scope for international diversification. International stock market linkages are the subject of extensive research due to rapid capital flows between countries because of financial deregulation, lower transaction and information costs, and the potential benefits from international diversification. Most stock markets in the world tend to move together, in the same direction, implying positive correlation. In and after crises they tend to move together even more strongly. Thus, this paper aims to research if there are any diversification opportunities by spreading out investments across developed and underdeveloped capital markets. This research attempts to examine the scope of international diversification between German and Bosnian equity markets during the 6-year period from 2006 to 2011. We test the hypothesis of whether there are any risk diversification possibilities by spreading out the investments between German and Bosnian equity markets. In order to determine the mean-variance efficiency of portfolios we use the method of convex (quadratic and linear) programming. The hypothesis is tested with the Markowitz portfolio optimization method using our own software. The results of this research might enhance the efficiency of portfolio management for both types of capital market under analysis, and prove especially useful for institutional investors such as investment funds.