Market Integration Research Articles

The effect of Russia-Ukraine war on stock market linkages beyond its borders: evidence from Latin America

ABSTRACT Previous studies have primarily examined the impact of wars on stock markets within their borders. Our study extends this to countries that are not directly involved in the war. Specifically, we employ TVP-VAR connectedness network approach to investigate the impact of the Russia-Ukraine war on stock market linkages in Latin America. We find that there was a marginal increase in stock market linkages in Latin America at the onset of the war. However, they returned to its pre-war levels, implying the resilience of Latin American stock market segmentation to war outside its borders. While this result suggests a potential opportunity for international investors to diversify geopolitical risk, we further find indirect effects of the war on the region through commodity markets, which may limit the diversification benefits. While previous studies suggest that external shocks such as pandemics and wars increase stock market integration, the results in this study show that they do not have uniform effects on stock market integration. Instead, our study highlights the importance of commodity markets in the investigation of stock market integration.

Electricity market integration in China: The role of government officials’ hometown ties

Market segmentation is common across various sectors, particularly evident in China's electricity market. Meanwhile, officials form a variety of geographic networks due to their innate backgrounds and acquired social connections. An extensive body of studies providing insights into the important role of officials' network ties in resource allocation, but little attention has been paid to the impact of this dynamic process on energy resources. Given that energy plays a significant role in shaping economic growth, our study complements this body of literature by examining how leaders with hometown ties impact inter-provincial electricity trade in China using a gravity model. The gravity model, which has become the traditional framework for estimating the determinants of trade flows, is applicable to the province pairs data structure in our study. Using data on provincial officials' hometown and inter-provincial electricity transactions for 30 provinces in China between 2007 and 2019, the results reveal that a leader whose hometown is i and current jurisdiction is j significantly increases the probability of electricity flowing from i to j, corresponding to a 53.73 % increase, which indicates that they implement a weaker market segmentation on their hometown. Moreover, the results reveal that this effect only occurs in a leader's tenure, and is particularly pronounced when a leader's hometown and current jurisdiction are on the same regional grid, or at least adjacent to each other, or when the current jurisdiction has higher power load levels. The results of mechanism analysis reveal that China's immature electricity market drives officials to leverage hometown ties for market integration, rather than promotion or rent-seeking. Our findings contribute to a deeper understanding of the broader impact of officials' personal ties. It also provides a valuable insight into the factors facilitating the integration of China's electricity market.

A Study on Spatiotemporal Evolution and Influencing Factors of Chinese National Park Network Attention

Due to advancements in information technology and growing eco-tourism demand, National Park Network Attention (NPNA) has emerged as a novel indicator of tourism appeal and ecological value recognition. Utilizing Baidu search index (accessed in 2023) data from 2013 to 2022, this study employs time series analysis, index analysis, and spatial statistics to measure and differentiate the spatial and temporal aspects of NPNA across 31 provinces, regions, and municipalities in mainland China, while systematically assessing the impact of various factors from both source and destination perspectives. Over the period of 2013 to 2022, NPNA has increased annually, peaking around holidays and during spring and autumn, demonstrating pronounced seasonality and precursor effects, while exhibiting volatility due to external events. Influenced by factors from both source and destination perspectives, the spatial distribution of NPNA displays a trend of being “high in the east and low in the west” and “high in the south and low in the north,” though regional disparities are diminishing. The population size in the source areas remains the dominant factor influencing NPNA, while the concept of national parks is not yet widely recognized. The destination’s tourism resource endowment, media publicity, accessibility, and level of informatization are significant influences. An effective integration of resources and marketing is essential for boosting NPNA. The findings provide valuable insights for optimizing the spatial layout of national parks, enhancing the tourism service system, innovating communication and promotional strategies, and improving national park governance effectiveness.

The Poor Integration Results of the Common European Asylum System Compared to the Temporary Protection Directive: The Case of the Netherlands

AbstractTaking the case of the Netherlands, we compare integration outcomes of the traditional asylum reception system (implementing the Refugee Convention), applied to, for example, Syrians and Afghans, and the EU’s Temporary Protection Directive (TPD) which is applied to Ukrainians. We show that the TPD is not just less costly for receiving countries but also results in much faster labor market integration. While rapid integration is an important policy goal, the traditional asylum system is not effective, and talents are underutilized. We show how spatial and temporal aspects of the asylum procedures for Common European Asylum System (CEAS) refugees lead to slow integration, while Ukrainians under TPD work immediately and can build connections in Dutch society.

The impact of market integration on the technological innovation of new energy vehicle enterprises

ABSTRACT How to give full play to the innovation incentive role of the unified market for new energy vehicle (NEV) enterprises is an issue that deserves high attention in the development of China's NEV industry. Selecting listed enterprises of NEV manufacturers in China from 2010 to 2020 as the research sample, this study distinguishes the technological innovation into two categories: basic innovation and commercial innovation, and constructs market integration indicators from market consolidation and regional linkage, so as to analyze how the construction of a national unified market will affect the technological innovation of the NEV industry. Besides, it also takes into account the moderating effects of two types of non-market institutional innovations. The results show that it is difficult to promote critical core technology breakthroughs by relying on market system innovation alone. While actively promoting the construction of a unified market, it is important to bring into play the interactive synergy between government support policies, enterprise R&D investment, and market integration. Furthermore, this study confirms that the impact of market integration on technological innovation of NEV enterprises exists in the form of regional boundaries, dynamic effects, and two types of transmission mechanisms, namely, efficient market and active government.

Impulsive Response Analysis of Financial Markets in QUAD Economies: A VAR Modelling Approach

Financial market integration remains a key focus in academic finance, especially given how crucial it is to portfolio diversification. The purpose of this research is to investigate a crucial yet underexplored aspect like the cointegration of economies with formal or unofficial military ties, focusing on countries within the Quad strategic forum—India, Japan, Australia, and the United States. The daily closing values of benchmark stock market indices of Quad economies viz. Nikkie 225 for Japan, S&P ASX 200 for Australia, NASDAQ composite for the United States, and S&P Sensex for India were considered. Unit root tests, Johansen Cointegration tests, VAR (Vector Autoregressive) model, and the Granger Causality statistics are computed for data analysis. Additionally, the Impulse response function and variance decomposition are computed for better financial market predictions. The result reveals intriguing dynamics: while the Indian stock market initially responds positively to shocks in the Australian market, this effect diminishes over time. Also, movements in the Australian and United States stock markets significantly contribute to predicting fluctuations in the Indian market, contrasting with the limited predictive power of the Japanese stock market. These findings carry significant practical implications for international investors, offering valuable guidance for optimizing portfolio diversification strategies amidst geopolitical and economic complexities. This paper contributes to academic literature by offering empirical insights into the short-term dynamics and causal relationships of Quad countries’ stock markets, setting a foundation for future studies on long-term trends and market responses to external factors.

MARKET EFFICIENCY AND STABILITY IN THE ERA OF HIGH-FREQUENCY TRADING: A COMPREHENSIVE REVIEW

This comprehensive review analyzes the impact of high-frequency trading (HFT) on market efficiency and stability, synthesizing insights from 50 peer-reviewed articles, industry reports, and regulatory documents. High-frequency trading, which leverages sophisticated algorithms and high-speed data networks, has significantly transformed financial markets. The review confirms that HFT enhances market efficiency by providing liquidity and facilitating rapid price discovery, contributing to tighter bid-ask spreads and lower transaction costs. However, it also highlights several challenges, including market fragmentation, increased volatility, and potential for market manipulation. The review examines how HFT can exacerbate market instability and systemic risks, as demonstrated by incidents like the 2010 Flash Crash. It underscores the importance of robust risk management practices and regulatory measures to mitigate these risks and enhance market resilience. While current regulatory frameworks have had some success, continuous adaptation is necessary to keep pace with rapid technological advancements. Additionally, the review points to the potential of AI and machine learning in improving market surveillance and risk management. Ultimately, the findings suggest that a balanced approach to regulation and innovation is crucial to maximizing the benefits of HFT while ensuring market integrity and stability.

The impact of market integration on industrial green transformation: A case study of the yangtze river delta in China

Regional integration plays an important role in dicarbon reduction and sustainability development. Based on dynamic panel model and spatial econometric model, this study analyzes the impact of market integration (MI) on industrial green transformation (IGT). The study finds that: (1) MI has a nonlinear relationship with the IGT. With the increasing of MI degree, the IGT shows the characteristic of first rising and then declining. (2) MI plays a role in the IGT mainly through industrial agglomeration, resource mismatch and green technological progress, respectively. (3) The impact of MI on IGT exhibits spatial heterogeneity. Although MI significantly promotes IGT in core cities, its impact on the IGT in peripheral cities is not significant. (4) The IGT has spatial spillover effect, and the improvement of MI degree in adjacent regions can also promote the IGT in the cities.

Umdenken beim Verkauf von Business-to-Business-Lösungen: Integration von Marketing, Vertrieb und Customer Success Management

ZusammenfassungDie Vermarktung und der Vertrieb von komplexen Produkt- und Dienstleistungsbündeln in Business-to-Business-Märkten wird als Solution Selling bezeichnet. Dieser Verkaufsansatz vermarktet keine einzelnen Produkte oder Dienstleistungen, sondern maßgeschneiderte Lösungen. Die Komplexität und Individualität der verkauften Lösungen erzeugt einen erhöhten Bedarf an relevanter und genauer Information auf beiden Seiten: Potenzielle Käufer recherchieren bereits vorab nach potenziellen Lösungen und die Anbieter müssen wiederum die Situation des Käufers verstanden haben. Für dieses tiefgreifende Verständnis der Kundenanforderungen sowie die passgenaue Distribution notwendiger Informationen ist eine enge Zusammenarbeit von Marketing, Vertrieb und Customer Success Management notwendig. Traditionelle Unternehmensstrukturen weisen jedoch oft eine Trennung zwischen Abteilungen auf, was zu Effizienzverlusten in der Kundenansprache und -bindung führen kann. Besonders in mittelständischen Unternehmen dominiert häufig der Vertrieb, während das Marketing unterrepräsentiert ist und das Customer Success Management in der Entwicklung hinterherhinkt. Dieser Beitrag stellt einen integrierten Verkaufsansatz vor und zeigt strategische Maßnahmen zur Förderung der Integration auf. Diese umfassen u. a. die Dezentralisierung von Entscheidungsprozessen, die Bildung funktionsübergreifender Teams oder die Einführung integrativer Rollen wie die eines Chief Revenue Officer (CRO).

Enhancing Financial Security in the Digital Age: Mitigating Risks of Virtual Currencies Through Regulation and Institutional Mechanisms

Abstract The swift rise of virtual currencies (VCs) as financial instruments has raised concerns about their ability to increase risks in the global financial system, especially given the current geopolitical instability. This article examines the connection between virtual currencies and financial security, highlighting the importance of strong economic and financial institutions and mechanisms to ensure the reliability of digital assets. We investigate through an extensive literature analysis the various risks linked to VCs, including market volatility, regulatory inconsistencies, and security vulnerabilities, which are exacerbated by geopolitical conflicts. We then examine how institutions have responded to these concerns, focusing on the proactive actions taken by international organizations and national authorities to reduce possible disruptions. The focus of our paper is the Markets in Cryptoassets (MiCA) law, an innovative legislative framework created by the European Union to standardize VC regulation among member states. We analyse the goals and main provisions of MiCA to evaluate its ability to establish an international benchmark for overseeing virtual currencies, ultimately improving investor safety and market integrity. The paper concludes by discussing the changing role of VCs in the geopolitical sphere and supports flexible and cooperative regulatory strategies to balance the advancement of digital assets with financial security needs.

Market Integration and Price Transmission of Grain And Rice In Jepara Regency

Abstract Jepara is one of the rice-producing centers in Central Java. The price of rice in Jepara always experiences an increase, which is not always the same as changes in the price of grain at the producer level. The differences in price movements in the market vertically indicate the need to study integration analysis and vertical price transmission. This study aims to analyze the market integration and price transmission of grain and rice between producers and consumer in Jepara Regency. The data used is secondary data in the form of daily data on the real price of dry unhusked rice harvested at the farm level, the price of rice at the mill level and the price of rice at the consumer level in Jepara Regency from 2020 to 2022 from the Office of Agriculture and Plantation of Central Java Province and the Food Security and Agriculture Service, Jepara Regency. Data was analysed using the VECM (Vector Auto Correction Model). The results showed that there was a vertical price asymmetry in the short and long term between the price of grain at the producer level (GKP), the price of milled rice (BMP), the price of wholesale rice (HBG) and the price of retail rice (BME) in Jepara Regency. Price formation at the consumer or retail level is influenced by the price of rice at the wholesale level and the price of grain at the farm level. The price of grain at the farm level also affects the price of rice at the milling level and the wholesale level but not vice versa. Thus, it can be concluded that grain producers are the determinants of rice prices in Jepara Regency.

Face to face: France, Germany and the future of the European defence industry

ABSTRACT France and Germany agree on the need to further European defence-industrial cooperation, but boast radically different preferences on how to structure such cooperation. Why? To answer this question, we introduce the distinction between the two faces of market size – the first exclusively related to defence, the second including the broader commercial-industrial base. Since Germany is, overall, more competitive than France in the commercial sector but less competitive in the defence one, it will advocate for a full-fledged integration of the European defence market but seek to protect its less competitive defence industry from France by championing autonomy in ad-hoc arms programmes. In turn, France would prefer to leverage its defence-industrial advantage by injecting efficiency on arms programmes but resist pan-EU initiatives to integrate the defence market, which would benefit Germany more over the long-term. To test our argument, we examine French and German preferences towards the European Defence Fund and the Future Combat Air System.

The Labor Market Integration of Women Having Suffered Gender Violence: Some Critical Questions.

The integration of women victims of gender-based violence (WVGBV) in the labor market is key to women's autonomy and empowerment. After pursuing some personal stability in different domains (emotional, physical, relational, etc.), these women require a further step toward recovery, which is often related to financial independence and, therefore, to their integration in the labor market. In this article, we describe the results of a study that focused on the actions aimed at integrating WVGBV into the labor market in the region of Andalusia (Spain). Based on a qualitative methodology, we collected the narratives and perspectives of the different actors involved in these processes (public administrations, nongovernmental organizations, the business world, and the WVGBV). The results revealed a series of deficiencies in social intervention methodologies that can sometimes lead to greater social exclusion. In conclusion, we believe that more participatory methodologies in their design, incorporating the views of woman themselves, are necessary.

Harmonizing Virtual Currency Use in the EU: The Evolution and Impact of MiCA Regulation

Abstract This article analyses the regulatory framework for virtual currencies in the European Union, tracing the development from several national laws to the comprehensive Markets in Crypto-assets (MiCA) regulation. At first, EU member states had different methods for regulating virtual currencies, creating a fragmented regulatory landscape that posed difficulties for market integrity, consumer protection, and cross-border transactions. This article covers the many regulatory responses before MiCA, explores the reasons for regulatory harmonization, and delves into the legislative process that resulted in the creation and proposal of MiCA. We examine how MiCA tackles the deficiencies of past regulations and its impact on standardizing virtual currency processes throughout the EU. MiCA's importance rests in its ability to provide a cohesive legal structure that harmonizes innovation with the requirements of financial stability and consumer safeguarding. This article explores how MiCA will influence member states' laws and the virtual currency market, providing insight into the future of EU financial regulation in the digital era.

European Financial Markets Integration and the Politics of Credit Rating Agencies: An Econometric Approach to Study Microeconomic Dynamics and Sustainability

Abstract On sovereign credit default swaps markets, contagion serves as a sobering reminder of the interconnectedness of global financial systems. Like ripples in a pond, the impact of sovereign default or downgrades can cascade across borders, highlighting the intricate web of dependencies among nations. Utilizing sovereign CDS spreads between 2006-2020 on local European markets, the study employs an event study methodology to assess the effects of rating changes on CDS spreads, focusing on negative events such as sovereign rating downgrades. The findings reveal that negative events have a greater impact on the CDS market than positive events, abnormal returns are higher during economic crises, and states with public debt exceeding the Maastricht criteria experience higher abnormal returns. These results suggest that investors are sensitive to adverse news and risk factors, see opportunities for profit during economic turmoil, and closely monitor fiscal sustainability metrics. Understanding and managing contagion risk in these markets requires not only vigilance but also cooperation and coordination among policymakers and market participants.

Market Integration and Agribusiness Performance in Indonesia

This quantitative study explores the relationship between Indonesian agricultural performance, technological adoption, market integration, and environmental legislation. Data was gathered via a survey of 250 agriculture companies, and structural equation modeling (SEM-PLS) was used for analysis. The findings show a strong correlation between agricultural performance, technology adoption, market integration, and environmental legislation. More specifically, improved productivity, profitability, and sustainability are linked to increasing degrees of market integration, technology adoption, and adherence to environmental regulations. The results highlight the significance of cultivating transparent and competitive markets, encouraging the adoption of contemporary agricultural technologies, and enacting efficacious environmental regulations to augment the competitiveness, sustainability, and adaptability of Indonesia's agribusiness industry.

Carbon market integration, productivity, and welfare: A quantitative analysis

AbstractChina's carbon market is far from being integrated. This paper studies how carbon emissions reduction and carbon market integration affect China's aggregate productivity and welfare via a quantitative spatial general equilibrium model with as a by‐product of production. We find that (1) were carbon emission rights to be allowed to be traded across regions, (i) if there is no technological growth, China's overall productivity and real GDP would increase by 10.26%, and 27.19% respectively, and welfare would decline slightly by 0.92%; (ii) if the technology grows at the present growth rate, China's total output, real GDP and welfare would increase by 9.97, 38.57, and 7.79%, respectively; (2) were nine regional carbon trading markets integrated, China's overall productivity, real GDP and welfare would increase by 4.35, 29.17, and 7.75%, respectively. Carbon market integration enables China to achieve economic development at a lower cost.

Evaluating the Impact of Market Integration Strategies on the Valuation of Cross-Listed Firms in Hong Kong and Mainland China

Evaluating the Impact of Market Integration Strategies on the Valuation of Cross-Listed Firms in Hong Kong and Mainland China

The spatial effect of low-carbon development of regional industries driven by the digital economy: evidence from Chinese cities

Utilizing data that encompass municipalities and regions within China at the prefectural level and beyond, spanning the period from 2012 to 2021, this study employed the spatial Durbin model to assess the spatial spillover impact of the digital economy in propelling low-carbon advancement within regional physical industries. This investigation elucidates the spatial spillover mechanism that underlies the low-carbon evolution of regional industries catalyzed by the digital economy and offers nuanced insights. The findings delineate the following observations: (1) The digital economy propels the low-carbon progression of indigenous physical industries and stimulates the low-carbon development of proximate regions’ physical industries through discernible spatial spillover effects. (2) The spatial spillover ramifications of the digital economy manifest a substantive correlation with urban attributes, including geographical positioning, population size, and market integration levels. Notably, municipalities situated in the southeast coastal region, those characterized by larger population sizes, and those exhibiting heightened market integration levels show greater spatial spillover effects attributable to the digital economy. (3) The safeguarding of intangible asset equity property, a pivotal institutional underpinning for fostering digital economic development, amplifies the spatial spillover effect of the digital economy in propelling low-carbon development within regional industries. (4) As geographical and spatial distances expand, the spatial spillover effect of the digital economy attenuates, indicating a diminishing influence with increasing spatial separation.

The Importance of Digital Marketing Integration in Strategic Management Planning

This study discusses the importance of digital marketing integration in the company's strategic management plan. Digital marketing has become a key factor in achieving business goals in the increasingly interconnected digital era. The formulated problems include understanding of digital marketing and its integration benefits, challenges in adopting digital marketing, and the role of technology and data analysis in supporting digital marketing integration and accurately measuring campaign effectiveness. In the context of understanding digital marketing, this research outlines the definition and role of digital marketing in the overall marketing strategy. Digital marketing integration opens opportunities to target markets more precisely, enhance customer engagement, and optimize customer experiences. Challenges include technical constraints, changes in organizational culture, and a lack of understanding of digital technology. To overcome these challenges, companies need to invest in resources, gain support from top management levels, and prioritize a data-driven approach in decision-making. The role of technology and data analysis is pivotal in supporting digital marketing integration. Companies should leverage data analytics technology and marketing automation to understand customer behavior, identify market trends, and deliver relevant messages automatically. Data analysis also aids in measuring campaign performance and calculating ROI, enabling companies to allocate marketing budgets effectively. In conclusion, digital marketing integration is not just a choice but a necessity for companies to remain relevant and competitive in an increasingly digital business era. By confronting challenges and optimizing the role of technology, companies can achieve competitive advantage, enhance marketing efficiency, and attain long-term success. A data-driven approach and the utilization of data analysis technology will be key for companies to achieve desired business goals.