Market Integration Research Articles

Impact of Financial Regulations on Bank Profitability in Uganda

Purpose: The aim of the study was to assess the impact of financial regulations on bank profitability in Uganda. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Financial regulations significantly influence bank profitability, primarily by affecting operational costs, risk management practices, and lending activities. Stricter capital requirements, such as those imposed by Basel III, generally enhance financial stability but may reduce profitability by limiting leverage and increasing the cost of compliance. Regulatory measures aimed at consumer protection and transparency, while beneficial for market integrity, can also impose additional administrative burdens and costs on banks. Conversely, deregulation periods often see increased profitability due to relaxed constraints on lending and investment activities. However, this can come at the expense of higher risk exposure and potential financial instability. Overall, the balance between regulatory stringency and bank profitability hinges on the specific regulations in place and the banks' ability to adapt and innovate within those frameworks. Implications to Theory, Practice and Policy: Agency theory, capital structure theory and information asymmetry theory may be used to anchor future studies on assessing the impact of financial regulations on bank profitability in Uganda. Practitioners should advocate for risk-based regulation that tailors regulatory requirements to banks' risk profiles and systemic importance. Policymakers should prioritize efforts to harmonize financial regulations across jurisdictions, especially in global banking hubs.

Variance risk premiums in emerging markets

We provide for the first time the emerging market variance risk premium (EMVRP) from 2006 to 2023, based on nine emerging stock and option markets—Brazil, China, India, South Korea, Mexico, Poland, Russia, South Africa, and Taiwan. The EMVRP significantly predicts international stock returns and currency appreciation rates, especially for horizons longer than six months. This is in sharp contrast with the predictive pattern of the developed market variance risk premium (DMVRP), which is more important over horizons shorter than six months. These findings are consistent with an illustrative model incorporating partial market integration and heterogeneous economic uncertainty.

Explaining the emergence of land-use frontiers.

Land-use expansion is linked to major sustainability concerns including climate change, food security and biodiversity loss. This expansion is largely concentrated in so-called 'frontiers', defined here as places experiencing marked transformations owing to rapid resource exploitation. Understanding the mechanisms shaping these frontiers is crucial for sustainability. Previous work focused mainly on explaining how active frontiers advance, in particular, into tropical forests. Comparatively, our understanding of how frontiers emerge in territories considered marginal in terms of agricultural productivity and global market integration remains weak. We synthesize conceptual tools explaining resource and land-use frontiers, including theories of land rent and agglomeration economies, of frontiers as successive waves, spaces of territorialization, friction and opportunities, anticipation and expectation. We then propose a new theory of frontier emergence, which identifies exogenous pushes, legacies of past waves and actors' anticipations as key mechanisms by which frontiers emerge. Processes of differential rent creation and capture and the built-up of agglomeration economies then constitute key mechanisms sustaining active frontiers. Finally, we discuss five implications for the governance of frontiers for sustainability. Our theory focuses on agriculture and deforestation frontiers in the tropics but can be inspirational for other frontier processes including for extractive resources, such as minerals.

Empowering economic independence: POKDAKAN modernization and market integration in Tanjung Rhu Village, Pekanbaru City

The "Mina Sari Jaya" Fish Cultivation Group (POKDAKAN) in Tanjung Rhu Village, Limapuluh District, Pekanbaru City, is undergoing an economic empowerment program aiming for group financial independence within RT 05 RW 06. This initiative combines legal and fisheries expertise to create a comprehensive community economic development strategy. The program offers training in digital marketing, fisheries business management, and legal aspects of running a business. As a result, the group has successfully developed and packaged processed catfish products like snacks and nuggets in standardized, attractive packaging, increasing market appeal. Additionally, these products are now available on online marketplaces like Shopee and Tiktok Shop, generating potential income for POKDAKAN members. Furthermore, the program facilitated the establishment of a formalized business entity for the farmer group, complete with a notarial deed and a deed of establishment.

Evolving Efficiency of Cryptocurrency Market: Evidence from Leading Cryptocurrencies

The article investigated the efficiency of the cryptocurrency market, with a focus on Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Binance Coin (BNB-USD), based on their substantial market capitalization. For this purpose, we observed the daily closing prices spanning from January 2018 to December 2023 and employed a set of robust tests, including the generalized spectral test, automatic portmanteau test, and automatic variance ratio test. The findings of the study reveal a random pattern in price fluctuations, indicating weak form efficiency. Furthermore, we adopted the rolling window approach to investigate whether market efficiency is dynamic or static over time. The empirical result illustrated that the crypto market efficiency remains static over time, except for USDT. In conclusion, the overall empirical results support the notion of the random walk hypothesis, indicating that past price movements offer no predictive insight into future prices. These findings have significant implications for investors, emphasizing the lack of predictive insight from past price movements. Policymakers are urged to establish a robust framework for market integrity and reliable price discovery.

Study visits – connections with the labor market, a study in Romania

This paper presents a case study based on student's responses to a survey applied in an extracurricular project carried out in 2022, who have made study visits, as an extracurricular activity, to present their role for labour market integration. Through extracurricular projects, including study visits, students can discover new equipment and technologies used in companies and identify the workflow at different workplaces. Study visits provide students with the opportunity to gain a real-time perspective on the field they aspire to work in and connect with professionals in that domain, establishing direct contact with various departments and functions within an organization. The study highlights the need to identify students' preferences so that activities carried out throughout the years of study respond as best as possible to their needs.

Integration of Artificial Intelligence with Web3 technologies for Affiliate Marketing: Review and Analysis

This article explores affiliate marketing integration with AI and Web3 technologies, providing a comprehensive analysis of their individual and combined potential to revolutionize the digital marketing landscape. Starting with defining the core components, the article sets a foundation for understanding how AI and Web3 can synergistically enhance affiliate marketing strategies. The paper proceeds with a detailed overview of traditional affiliate marketing models, highlighting their evolution in response to technological advances and changing market dynamics. The article further examines the global landscape of affiliate marketing, presenting current statistics and trends that underscore its economic significance. A focused discussion on AI technologies pertinent to affiliate marketing reveals how machine learning, natural language processing, and predictive analytics can optimize performance and decision-making processes. The role of Web3 is examined by its ability to introduce decentralized, transparent, and secure elements into affiliate marketing, suggesting a shift towards more user-centric models. Finally, the potential of combining AI with Web3 is discussed, illustrating how this convergence can lead to innovative marketing strategies that are more effective and uphold higher standards of integrity. This synthesis aims to illuminate how modern technologies can be harnessed to foster a new digital marketing era.

Apple: A Clever Integration of Psychology and Scientific Marketing

Apple: A Clever Integration of Psychology and Scientific Marketing

Recent progress in hukou reform and labor market integration in China: 1996–2022

To investigate the household registration system (hukou) reform in China, it is important to quantify the thresholds of obtaining hukou in urban areas at the city level. We build a new index to measure the likelihood of obtaining urban hukou for migrants in each destination city, termed the “settlement probability”, based on individual information of floating population from the population census and hukou policies of 332 cities from 1996 to 2022. We find that the average settlement probability has been steadily increasing since 1999, reaching 91% in 2022, and 15 provinces have achieved low thresholds. We further build a simple general spatial equilibrium model with the factor of settlement probability to investigate the impacts of hukou reform. The empirical analysis shows there is a mismatch between settlement probability and settlement intentions. Moreover, we find that higher settlement probability is significantly correlated with more migrants' inflow, lower migrants' wages and higher urban housing prices, especially in more developed cities. Therefore, hukou reform is crucial for enhancing the integration of China's labor market.

Kenya’s macroeconomic policies and trade efficiency within the East African Community: A stochastic frontier analysis

Despite Kenya dominating trade volumes in the East African Community (EAC), it has been trading below its potential within the region. This is also in spite of the increased scope of the country’s trade opportunities resulting from the region’s increased market integration. Empirical evidence has shown that macroeconomic policies influence international trade flows. However, there is limited empirical evidence on the effect of macroeconomic policies on trade efficiency. The few existing studies on this topic have also used estimation techniques that depict efficiency as being drawn from an average level of trade and not the optimal level of trade, as well as also not separating the effects of inefficiencies from the statistical noises. This, therefore, creates a knowledge gap that this study aims at investigating by using the stochastic frontier gravity model (SFGM), to determine the effect of Kenya’s macroeconomic policies on its trade efficiency within the EAC. The study used annual panel secondary data for the period 2000 to 2021. This study finds that the GDP of Kenya and that of its EAC trading partners, the geographical distance and border significantly affects trade volume. It also finds that globalization plays a significant role in influencing Kenya’s trade. For the inefficiency model variables, exchange rate depreciation was found to significantly increase trade efficiency, while increase in tariff rate had an adverse and significant effect. Further, the study included corruption as a control variable and found that it significantly increases trade inefficiency. Kenya, though trading at an average efficiency level of 86.91 percent, was found to have high unexploited trade potentials within the region especially with Tanzania and Uganda. The study recommends that Kenya’s policymakers deliberately advance the macroeconomic policies that promote trade efficiency while at the same time closely monitor the ones that hinder efficiency.

LONG-TERM EQUILIBRIUM RELATIONSHIPS BETWEEN THE STOCK AND CRYPTOCURRENCIES MARKETS

This study investigates the long-term equilibrium relationships between the stock market, represented by the Dow Jones Industrial Average (DJIA), and a comprehensive range of 401 cryptocurrencies traded on Binance. Employing Johansen cointegration tests on data from January 2018 to May 2024, we examine pairwise relationships between 30 DJIA components and cryptocurrencies across various categories. Our findings reveal varying degrees of integration, with some stocks like Visa and Walt Disney Company showing strong cointegration with numerous cryptocurrencies. Sector-specific patterns emerge, such as significant links between technology stocks and platform tokens, and between financial services and DeFi tokens. Platform tokens exhibit the highest overall integration with stocks, followed by DeFi and NFT/Gaming domains. Notably, some cryptocurrencies, including major ones like Ethereum and Bitcoin, show high levels of cointegration, while others display independence. Stablecoins demonstrate strong cointegration with all stock prices. These results provide nuanced insights into the complex interactions between traditional and digital finance, contributing to our understanding of market integration, diversification strategies, and the evolving financial ecosystem.

The Efficiency of Investment in Indian Stock Market using GRA Method

The Indian Stock Exchange, holds significant sway in the country's economy. They serve as pivotal platforms where a plethora of companies from diverse sectors converge, contributing to fastest growing in the world of one of the economies, a growth story. Growing up engaged in development stories for those interested, the Indian Stock Exchange offers many opportunities: government policies, economic indicators, Global market trends. It is affected by various factors like corporate earnings, all of which significantly impact stock prices. Indian stock market for the economic well-being of the country acts as a measure and reflecting global trends its dynamic shows character it is stocks, derivatives various financial like Includes tools. commodities, and currencies, with distinct sections, prominently represented by housing numerous listed companies across diverse sectors. Both domestic and international investors engage in the market, aiming for wealth creation while navigating associated risks according to their objectives. Over the years, spurred by economic reforms, technological advancements, and increased investor participation, India's stock market has experienced significant expansion and evolution. It has transitioned to electronic trading platforms, enhancing efficiency, transparency, and accessibility. Regulatory reforms have bolstered investor confidence and market integrity. Indian stock market for the economic well-being of the country acts as a measure and reflecting global trends its dynamic shows character it is stocks, derivatives various financial like Includes tools. commodities, and currencies, with distinct sections, prominently represented by housing numerous listed companies across diverse sectors. Both domestic and international investors engage in the market, aiming for wealth creation while navigating associated risks according to their objectives. Over the years, spurred by economic reforms, technological advancements, and increased investor participation, India's stock market has experienced significant expansion and evolution. The primary purpose of GRA is to elucidate the comparative ranking of alternatives based on their performance. In this method, known as Gray Relative Analysis, a super target sequence is established in accordance with specific scenarios. Subsequently, each alternative in the rows undergoes evaluation using the Carey correlation coefficient against the satisfying target collection. Finally, the gray correlation is computed by applying coefficients, revealing the correct target sequence and determining the size of gray contact for each variant sequence Infosys Limited, Reliance Industries Limited, HDFC Bank Limited, Tata Consultancy Services Limited and Housing Development Finance Corporation Limited. Earnings Per Share (EPS), Price-to-Earnings Ratio (P/E Ratio), Return on Equity (ROE), Debt-to-Equity Ratio (D/E Ratio) and Market Capitalization. The rank of GRA indicates the efficiency of investment in the Indian stock market. Housing Development Finance Corporation Limited has the highest GRG rank value, while HDFC Bank Limited has the lowest value.

European business cycles and economic growth, 1300–2000

The modern business cycle features long expansions combined with short recessions, and is thus related to the emergence of sustained economic growth. It also features significant international co-movement, and is therefore associated with growing market integration and globalisation. When did these patterns first appear? This paper explores the changing nature of the business cycle using historical national accounts for nine European economies between 1300 and 2000. For the sample as a whole, the modern business cycle emerged in the nineteenth century.

Evaluating the meat market integration in the capital city and rural areas

Evaluating the meat market integration in the capital city and rural areas

Insider Trading Analysis of the Indonesian Capital Market

Insider trading is one of the crucial issues in the capital market that can have a significant impact on market integrity and stability. In Indonesia, the practice of insider trading not only causes losses for investors who do not have access to insider information but can also reduce investor confidence in the capital market as a whole. Research This article will analyze and explain Insider Trading in the Indonesian Capital Market. This study uses notative juridical methods or normative law. The results of this study explain that Insider Trading in the Indonesian Capital Market is contained in Articles 95, 96, 97, 98, 99, and Article 104 which explain that insiders from an issuer of public companies that have inside information are prohibited from buying or selling affects, or companies that make transactions with issuers where they work. The prohibition on the use of insider information is more due to unfair actions against others who are completely unaware of the existence of the information. Investor protection is one very important way because if investors do not get enough protection, they are reluctant to make transactions on the exchange. Without a large number of investors, capital market activities will be weak, and the function of the capital market will not develop, the principle of openness as one of the efforts to protect investors. Such protection efforts will be realized if the implementation of information transparency or full disclosure obligations containing material facts in activities that take place in the capital market in accordance with the purpose of the principle of openness itself, namely to create a fair, efficient and orderly market that protects Investors and helps determine accurate market prices which are all intended for the benefit of Investors or potential Investors.

Survival and social support networks: visual narratives of labour market integration among highly skilled African immigrants in Quebec

Despite the growing presence of highly skilled African immigrants in Quebec, Canada, there is a paucity of research on their adaptation processes, specifically regarding survival and social support. This study addresses this gap by investigating the survival strategies of highly skilled African immigrants (HSAI) in Quebec, utilising photovoice to vividly capture their social support systems and survival cultivation. Drawing on Ungar's (2012. The Social Ecology of Resilience: A Handbook of Theory and Practice. Springer) ecological perspective of survival, and Tardy’s model (1985. “Social Support Measurement.” American Journal of Community Psychology 13 (2): 187–202) of social support, this research elucidates the strategies employed by HSAIs to thrive. Data collection involved respondents sharing photographs that symbolise their survival while assimilating into Quebec's labour market, revealing that family, cultural groups, religious organisations, recreational activities, and professional networks play pivotal roles in their adaptation. These findings highlight the importance of a multifaceted support system in fostering survival and successful integration, suggesting that policymakers should focus on enhancing these networks to aid HSAIs’ adjustment to life in Quebec.

Transportation infrastructure, market integration and corporate innovation

ABSTRACT Innovation is the fundamental driving force that shapes micro-corporates’ competitiveness and promotes macroeconomic growth. In this paper, we systematically measure the stock of transportation infrastructure and the degree of market integration using China’s 30 provinces data from 2009 to 2019. On this basis, we investigate the impact of transportation infrastructure on corporate innovation. We find that transportation infrastructure contributes significantly to the quantity and quality of corporate innovation. The mechanism by which transportation infrastructure promotes corporate innovation is by influencing market integration. We further find that the channel through which transportation infrastructure promotes corporate innovation by affecting the integration of commodity markets is by broadening the size of corporate’ markets, while the channel through which transportation infrastructure promotes corporate innovation by affecting the integration of capital goods and labour markets is by improving the efficiency of resource allocation in factor markets. Our study provides new evidence on the effects of transportation infrastructure on economic growth.

Assessing China's rare earth supply security

As strategic minerals become increasingly critical in the competition among great powers, combined with high-quality development requests, their security issues gain more prominence. Based on an in-depth understanding of the connotation of China's strategic mineral security, this article developed a rare earth security assessment index system with 3 sub-objects: global supply stability, domestically economic security and coexistence, then conducted sensitivity analysis using Monte Carlo simulation. The results show that: (1) Global supply stability increased, then fluctuated and declined due to deficiencies in sustainable development and politics, affecting China's long-term rare earth security index; (2) Domestically economic security was weakening due to reduced mine supply, impacting China's short-term rare earth security index; (3) The coexistence index was rising, influenced by industry chain security changes, with increases benefiting China's rare earth security index; (4) China's rare earth security level rose from 2010 to 2022, tracking the coexistence index, indicating that international market integration boosts rare earth security. Based on the above findings, the article puts forward corresponding policy implications.

The mediating effect of trust on financial development and stock market comovement in BRICS economies

This study examines the effects of financial development on the stock market comovement of Brazil, Russia, India, China and South Africa (BRICS) on the one hand and the US Dow Jones on the other. Its main goal is to find out if trust has a mediating effect on financial development using data from the World Bank and the World Value Survey (WVS). Panel data analysis along with ARDL methods helped the authors obtain robust results. It was found that financial development plays a significant role in determining stock market comovement among the countries in question and that trust also has a moderating impact. The analysis was extended to the institutional and market factors of financial development. The paper introduces trust as a mediating variable that positively affects financial development, which in turn promotes stock market integration and comovement. Its results imply that investors should consider financial development and trust levels of a country when considering portfolio allocation for global diversification purposes, especially in emerging markets. Countries with insufficient trust levels, like Brazil, could benefit from improving their trust score through enhancing financial development and stability.

Domestic market integration and multi-product firms’ export behaviours: evidence from China

ABSTRACT This study investigates the effects of domestic market integration (DMI) on corporate export behaviour. Utilizing a regional DMI index and data from Chinese A-share listed multi-product firms between 2006 and 2015, we find that DMI expands export scale and reinforces firms’ export behaviours. Specifically, quality-based competence firms upgrade the quality of their core products, whereas cost-based competence firms reduce the prices of their core products. These findings have significant implications for emerging countries implementing upgraded international trade and prompting domestic market integration.