Market Integration Research Articles

Does Domestic Market Integration Promote an Increase in the Export Value of Manufacturing?

Based on provincial-level data from China from 2008 to 2022, this study examines the impact of market integration on manufacturing exports. Market integration significantly enhances the export value of manufacturing. Mediation effect analysis indicates that market integration fosters export growth by promoting corporate innovation and economies of scale. Heterogeneity analysis confirms the differences between industries. Heavy industries are more affected by international competition and technological advancements. Light industries benefit more from market integration.

Leveraging prompt engineering to enhance financial market integrity and risk management

This paper presents a comprehensive investigation into the role of prompt engineering in optimizing the effectiveness of large language models (LLMs) like ChatGPT-4 and Google Gemini for financial market integrity and risk management. As AI tools are increasingly integrated into financial services, including credit risk analysis, market risk evaluation, and financial modeling, prompt engineering has become crucial for improving the relevance, accuracy, and contextual alignment of AI-generated outputs. This study evaluates the impact of various prompt configurations in enhancing financial decision-making. Through a series of experiments, the paper compares the performance of ChatGPT-4 and Google Gemini (versions 1.5 and 2.0) in generating actionable insights for credit and market risk analysis. The results reveal that ChatGPT-4 outperforms Google Gemini by over 30% in generating accurate financial insights. Additionally, ChatGPT-4 Version 4 is found to be 20% more effective than Version 3 in risk analysis tasks, particularly in aligning with regulatory frameworks and financial data. These improvements highlight the significant role of prompt engineering in enhancing the precision of financial models. Furthermore, the study explores the reduction of error rates through optimized prompt strategies. In particular, prompt engineering reduces error rates by approximately 20% when assessing complex financial queries.

Concepts of Digital Financial Technologies and Their Legal Nature

Digital financial technologies (FinTech) have revolutionized the financial industry by integrating innovations such as blockchain, artificial intelligence, and decentralized finance into traditional systems. This study explores the conceptual evolution of FinTech and its legal and regulatory implications within global markets. It addresses challenges in defining, classifying, and regulating FinTech while maintaining market integrity and consumer trust. Using an integrative literature review of recent peer-reviewed articles, policy reports, and regulatory frameworks, the study examines themes like legal classifications of digital assets, regulatory strategies, consumer protection, and governance of blockchain platforms. Findings indicate that digital finance has surpassed traditional regulatory systems, leading to legal ambiguities and enforcement issues. Solutions like regulatory sandboxes, tailored crypto-asset regulations, and international standards show promise but must balance innovation with compliance. The study concludes that adaptive regulations, robust consumer safeguards, and global cooperation are critical for FinTech’s sustainable growth and alignment with legal frameworks.

Market Potential Evaluation of Photovoltaic Technologies in the Context of Future Architectural Trends

In order to elucidate the market potential and competition strategies of various photovoltaic (PV) technologies in the context of future architectural trends, taking into account the aesthetic impact and evolving architectural styles, a suite of market assessment methodologies was proposed and applied to systematically evaluate five commercially available PV technologies. Three methodologies were employed or introduced: a comprehensive weighting approach that integrates the TOPSIS entropy weight method with user weight surveys, cumulative prospect theory (CPT), and a market integration method. The survey revealed that price emerged as the paramount factor distinguishing technologies, with a score of 4.8766, closely followed by conversion rates, at 4.8326. Aesthetics was deemed 3% more significant than government subsidies to consumers, scoring 4.4414. During the evaluation, technical indicators were translated into professional financial metrics. The results indicated that crystalline silicon PV technologies hold market advantages in both traditional and transparent applications. Monocrystalline silicon exhibited the highest utility in traditional settings, with a value of −0.0766, whereas polysilicon topped the charts in transparent applications, scoring −0.0676. However, when aesthetics was fully factored in, thin-film technologies began to outperform crystalline silicon, initially in transparent settings and subsequently in traditional ones. When both scenarios were merged, the market share of thin-film PVs increased with a rise in transparent applications, while that of crystalline silicon PVs decreased. Sensitivity and comparative analyses yielded diverse outcomes, validating the robustness of the findings. Further research unveiled that, beyond utility and cost, competition and technological factors also influence market shares, particularly when contemplating future shifts in architectural styles and innovations in product aesthetics. Considering the above, crystalline silicon PV can dominate the PVs in the building market due to their advantages of cost and efficiency, and thin-film PVs can increase their own market share with their aesthetic advantages in the future.

Biosimilars: A Critical Review of Development, Regulatory Landscape, and Clinical Implications.

The biopharmaceutical industry has witnessed significant growth in the development and approval of biosimilars. These biosimilars aim to provide cost-effective alternatives to expensive originator biosimilars, alleviating financial pressures within healthcare. The manufacturing of biosimilars is a highly complex process that involves several stages, each of which must meet strict regulatory standards to ensure that the final product is highly similar to the reference biologic. To gain regulatory approval, biosimilars must undergo rigorous analytical characterization including in vitro assays, bioanalytical evaluations, and clinical similarity studies like pharmacokinetic (PK), pharmacodynamic (PD) assessments-to demonstrate safety, efficacy, quality comparability with reference products. Leading regulatory agencies such as the European Medicines Agency (EMA), the World Health Organization (WHO), and the United States Food and Drug Administration (US FDA) have established stringent guidelines for biosimilar evaluation and post-marketing surveillance. Despite this regulatory clarity, challenges around interchangeability, market exclusivity, and patent protection often delay market access and limit adoption, particularly in regions where automatic substitution is restricted. Case studies of biosimilars such as rituximab, adalimumab, filgrastim, and trastuzab reveal both advancements and ongoing hurdles in achieving broader market integration. The introduction of biosimilars has shown potential to reduce healthcare costs; for example, a recent analysis indicates a 20-30% cost reduction in the U.S. due to biosimilar adoption. As the biosimilar market expands, collaborative efforts among regulatory bodies, industry stakeholders, and healthcare providers are essential to enhance access to biologic therapies. This collaboration is poised to improve patient outcomes and catalyse transformative change in global healthcare systems.

Class Dynamics at the Margins: Capitalist Relations Among Shea Nut Collectors in Burkina Faso and Ghana

ABSTRACTIn recent decades, the increasing international demand for shea nuts has resulted in changes to the livelihoods of women collecting and processing these nuts in West Africa. Market integration of shea nut collectors affects social dynamics as capitalist relations and significant income differences among the collectors emerge. Using survey data, we establish a typology to describe shea nut collectors, based on the financial capital that they invest in shea and their other sources of income. We show that a small group of collector‐traders is able to benefit from the shea boom through the sale of shea nuts purchased from other collectors at a lower price. Conversely, a larger group of dedicated and diversified collectors are compelled to sell their nuts at a low price for their subsistence. This interdependence highlights capitalist relations, income gaps and social differentiation among the collectors. This process intersects with gendered access to ownership and income control. Our analysis challenges common assumptions about the potential of market integration to achieve win–win scenario and shows that unequal development is constitutive of such approaches. Despite the limited role of shea nut collection in household income, we argue that the social differentiation at play shares similarities with that observed for cash crops in other cases of agrarian change. We conclude by highlighting that shea nut collectors need to be perceived as a heterogeneous group, navigating the intricacies of capitalist market integration with different interests and opportunities.

Overview of the e-Fuels Market, Projects, and the State of the Art of Production Facilities

E-fuels, or synthetic fuels produced from green hydrogen and captured CO2, are a promising solution for achieving climate neutrality by replacing fossil fuels in transportation and industry. They help reduce greenhouse gas emissions and efficiently utilize renewable energy surpluses. This study aims to assess the current state and future potential of e-fuel production technologies, focusing on their scalability and market integration. A comprehensive literature review and market trend analysis, including modeling based on historical data and growth forecasts, were used to estimate market penetration. Results indicate that e-fuels could reach a 10% market share within the next 5 years, potentially reaching 30% in 20 years, particularly in aviation, maritime transport, and the steel industry. Ongoing projects expected to be completed this decade may cover about 20% of the global liquid fuel demand for transportation. However, challenges such as high costs, scalability, and recent project terminations due to funding shortages highlight the need for substantial investment, regulatory support, and innovation. Global collaboration and policy alignment are essential for the successful development and integration of e-fuels as a critical pathway to decarbonization.

Does environmental regulation promote energy market integration? Evidence from China’s carbon emission trading pilot

ABSTRACT Establishing a unified energy market is an important way to achieve the security of the energy supply, improve energy efficiency, and reach carbon neutrality. This paper examines the impact of environmental regulation, represented by the carbon market, on the integration of the energy market. Using panel data from 30 provinces and municipalities in China from 2003-2021, we identify the impact of the carbon emission trading pilot policy on the level of energy market integration (EMI) through the staggered DID model. On this basis, the mechanism was further analysed, with heterogeneous effects from multiple perspectives. The results show that (1) the carbon emission trading pilot policy improved the regional EMI; (2) the carbon emission trading pilot policy intensified the level of competition in the energy market, reduced the government’s intervention, and promoted the development of innovation in clean energy technology, thus positively contributing to the EMI; and (3) the contribution of the carbon emission trading pilot policy to the EMI was heterogeneous. The carbon emission trading pilot policy has stronger marginal effects in regions with lower levels of development, and the policy effects are more pronounced in regions with more abundant clean energy resources. The enforcement of stricter environmental standards and improved information disclosure can help carbon markets exert a positive effect on EMI. Better levels of environmental infrastructure and the development of renewable energy infrastructure are necessary elements to ensure that the carbon market promotes EMI. This study provides key insights and policy implications to better promoting EMI and implement dual-carbon goals.

Research Note: New Estimates of Immigrants' Self-employment From Linked Tax Records.

Self-employment plays a crucial role in immigrants' economic assimilation. Previous studies examining immigrants' self-employment relied on estimates obtained from national surveys, which could contain measurement error. In this research note, we compare estimates of immigrant men's self-employment obtained from the Current Population Survey (CPS) with those from data linking respondents to their tax records. Our findings indicate that the CPS substantially underestimates the immigrant-native gap in self-employment. In some cases, the rate of self-employment for immigrants from administrative data is nearly double that obtained from survey data alone. Measurement error also appears to distort estimated differences in self-employment among immigrants by race, ethnicity, and national origin. The results highlight the greater importance of self-employment for the labor market integration of immigrant men than was previously known on the basis of survey data alone.

Regional Economic Communities and Attitudes Toward Free Cross-Border Movement in Africa

Contrary to narratives in the media, most African migrants move across borders within the continent, and most often to other countries in their immediate region. Drawing on a sample of roughly 43,000 people from 36 African countries, this article uses multilevel models to investigate the factors influencing support for either free cross-border movement or government restrictions on immigration. In contrast to previous studies, this article illuminates the substantial importance of regional economic communities within Africa and associated policies around mobility and labor market integration. Empirically, the quantitative results demonstrate that individual support for open borders is significantly higher in regional blocs with well-established free movement protocols and supportive policies, compared to those residing in blocs with more restrictive mobility and labor market integration policies. To better understand the country-level variation within these blocs, I draw on secondary literature to highlight the importance of certain economic, demographic, and security considerations, which likely both shape and reflect citizens’ attitudes toward open borders. This is a novel contribution to the public attitudes toward immigration policy literature, which has neglected the importance of regional frameworks even though they are a crucial instrument in determining national-level migration and integration policy within Africa and beyond.

The Impact of Monetary Policy on Stock Price Index Movement

This study aims to analyze the impact and effectiveness of monetary policy on the decline of the Composite Stock Price Index (IHSG) during the COVID-19 pandemic. The research employs a quantitative approach using Ordinary Least Squares (OLS) with equations 2017-2024 to evaluate the relationship between monthly IHSG and variables such as BI Rate and Exchange Rate. The findings reveal that IHSG significantly affects JUB, con-sistent with previous research indicating that monetary expansion by Bank Indonesia en-hances market liquidity and raises IHSG. However,during the pandemic, global uncertainty disrupted the relationship between IHSG and other economic variables, as evidenced by the insignificance of IHSG concerning BI Rate andthe significant impact of Exchange Rate in the first equation, and Dow Jones in the second. The significant influence of Dow Jones on IHSG highlights global market integration and its effect on investor sentiment in Indonesia. The study emphasizes the importance of understanding the relationship be-tween IHSG and economic variables amid global uncertainty.

How does infrastructure investment boost tourism development? Evidence from China

Despite infrastructure investment being an essential means to boost tourism development, empirical specifications are needed to examine the different effect of infrastructures on tourism. Based on the infrastructure-led development theory, this study utilizes panel data from China’s 30 provincial-level administrative units and categorizes infrastructure investment into three types: traditional, technology, and livelihood. The findings reveal that all three types of infrastructure investment contribute to tourism development. Notably, the livelihood infrastructure investment emerges as the most impactful factor, while the technology infrastructure investment demonstrates relatively minor impacts. The impact of infrastructure investments on tourism development is mediated by market integration, with positive moderating effects of tourism resource endowment. Heterogeneity analyses show that the positive impact of infrastructure investment on tourism development also varies across different regions. This study enriches the infrastructure-led growth theory and provides valuable empirical evidence to guide the effective utilization of infrastructure investment for tourism development.

Determinants of South African Asset Market Co-Movement: Evidence from Investor Sentiment and Changing Market Conditions

The co-movement of multi-asset markets in emerging markets has become an important determinant for investors seeking diversified portfolios and enhanced portfolio returns. Despite this, studies have failed to examine the determinants of the co-movement of multi-asset markets such as investor sentiment and changing market conditions. Accordingly, this study investigates the effect of investor sentiment on the co-movement of South African multi-asset markets by introducing alternating market conditions. The Markov regime-switching autoregressive (MS-AR) model and Markov regime-switching vector autoregressive (MS-VAR) model impulse response function are used from 2007 March to January 2024. The findings indicate that investor sentiment has a time-varying and regime-specific effect on the co-movement of South African multi-asset markets. In a bull market condition, investor sentiment positively affects the equity–bond and equity–gold co-movement. In the bear market condition, investor sentiment has a negative and significant effect on the equity–bond, equity–property, bond–gold, and bond–property co-movement. Similarly, in a bull regime, the co-movement of South African multi-asset markets positively responds to sentiment shocks, although this is only observed in the short term. However, in the bear market regime, the co-movement of South African multi-asset markets responds positively and negatively to sentiment shocks, despite this being observed in the long run. These observations provide interesting insights to policymakers, investors, and fund managers for portfolio diversification and risk management strategies. That being, the current policies are not robust enough to reduce asset market integration and reduce sentiment-induced markets. Consequently, policymakers must re-examine and amend current policies according to the findings of the study. In addition, portfolio rebalancing in line with the findings of this study is essential for portfolio diversification.

Agricultural Transformation and its Contribution to Economic Development in South Asian and African Countries

Agricultural transformation is central to economic development, driving modernization, productivity enhancement, and integration into broader economic systems. This study compares South Asia and Africa, analyzing their distinct trajectories influenced by sustainable practices, policy reforms, and technological advancements. In South Asia, agricultural employment declined sharply, with Bangladesh dropping from 80% in 1973 to 35% in 2023, and India from 70% to 37%. Africa saw a more gradual decline, from 70% to 48% during the same period. Productivity improvements highlight regional progress, with agricultural productivity growth rising in Bangladesh (3.3% to 4.1% by 2023) and Kenya (3.3% to 4.1%), while manufacturing productivity surged in Kenya (6.6%) and India (5.2%). South Asia's growth leverages high-yield crops and market integration from the Green Revolution, while Africa focuses on climate-smart agriculture, diversification, and community-based solutions to address climate vulnerabilities and infrastructure gaps. Both regions emphasize sustainability as a resilience strategy. Using a four-stage paradigm of agricultural transformation, the study underscores the significance of transitioning from subsistence to high-value, technology-driven agriculture for economic diversification and resilience. By analyzing labor productivity, GDP per capita, and crop production indices, the research demonstrates agriculture's critical role in fostering sustainable development and economic growth across both regions.

Examining Market Quality on the Egyptian Exchange (EGX): An Intraday Liquidity Analysis

This study examines the intraday dynamics of liquidity and trading activity on the Egyptian Exchange (EGX) to assess its market quality. Using reconstructed five-minute limit order book data, this study measures liquidity dimensions and explores anomalies through interval-of-day and day-of-week models. Key findings reveal an inverted J-shaped pattern in spreads due to information asymmetry, a U-shaped pattern in total depth, and a J-shaped market depth pattern. Additionally, significant day-of-week effects are observed, with Sundays showing the lowest liquidity and Thursdays the highest trading activity. These patterns highlight the impact of the EGX’s unique microstructure, including tick sizes and a preference for limit orders. This study underscores the influence of market structure on liquidity, trading efficiency, and cost, emphasizing the need for tailored regulatory and trading strategies. It provides valuable insights for investors optimizing trading strategies and policymakers seeking to enhance market integrity. Concluding, this research offers a foundation for understanding intraday liquidity patterns in emerging markets like the EGX and proposes future exploration of how information flows and trading mechanisms affect price discovery and market efficiency.

Price interactions between capture fisheries and aquaculture: Evidence from India

Fish is probably the only major food product in the modern human food system for which wild harvests are still important in the market supply despite the rapid growth in production of farmed fish/aquaculture. The issue of substitution, or competitive interaction, between capture fisheries and aquaculture is of immense interest due to its role in determining market prices, livelihoods, and welfare in the two sectors. This is particularly true for a developing country like India where fisheries and aquaculture play an important role in livelihood creation, export revenues, and food security. India has also witnessed a remarkable increase in inland aquaculture production which is now the largest contributor to the country’s total fish production. In this article, we employ recursive cointegration analysis and time-varying copula estimations to analyze a novel dataset to describe the evolution in the relationship between the prices of inland capture fisheries and aquaculture products in India over time. Our results suggest an increased degree of market integration for inland fish products in India over time, though the degree of integration is lower for the capture fisheries products compared to the aquaculture products.

The paradox of digital marketing: Sustainable framework for effective strategies and regulatory challenges

This research aims to explore the digital marketing paradox in the context of a sustainable framework. It investigates the relationship between usability, customer behavior, and the sustainable digital performance of effective strategies, as well as the regulated usability of e-commerce as a digital platform (including ethics, regulations, and practices). A qualitative research design was employed to develop a sustainable digital framework for these industries. This was followed by a quantitative descriptive analysis to provide triangulated results. This research collected and analyzed primary and secondary data from four case studies. The data were sourced from multiple industries, focusing on the perspectives of marketing professionals. Primary data were gathered through interviews with marketing professionals from various sectors, while secondary data were obtained through literature reviews and sustainability reports. The empirical findings identified two key types of sustainable digital-influencing themes: internally-focused and externally-focused digital marketing drivers integrated within digital platforms. These drivers demonstrate how they leverage improvements in sustainability digital performance, including digital platform approaches and governance structures. The findings highlight an innovative digital marketing paradox integrated into digital platform approaches, which contributes a novel empirical perspective to enhancing the industry's decision-making processes for creating successful sustainability-focused digital performance, encompassing ethics, regulations, and best practices. This research represents one of the few attempts to explore the integration of digital marketing into digital platforms for improved sustainability digital performance by addressing effective strategies and regulatory challenges. Thus, this study contributes to both the theoretical and practical knowledge of digital platforms, especially within emerging economies such as Jordan.

Market integration and resident health in China

This paper uses data from the China Health and Nutrition Survey (CHNS) to study the impact of market integration on residents’ health. The empirical results based on the probit model show that market integration has a significant dampening effect on resident incidence. For every one-unit increase in the degree of market integration, the probability of residents becoming sick decreases by approximately 1.45%. Moreover, after a series of robustness tests, the conclusion is still valid. This study further analyses the potential mechanism and finds that the promotion of market integration can improve the medical conditions available to residents, optimize the nutritional indices of residents, and reduce labor load of residents, thus improving their health. The results of the heterogeneity test show that there are certain differences in the impact of market integration on the health level of residents of different genders, ages and income classes. At the same time, this study also verifies that there is a synergistic effect between internet penetration and market integration.

Spatial Price Integration and Spillover Linkages Between Regional Grain Markets in Nigeria

ABSTRACTThis paper aims to characterize the spatial set‐up of Nigeria's grain market integration from January 2002 to December 2013 across 19 Nigerian regions. Using market price data of maize, sorghum, and millet, two hypotheses are tested: (i) the law of one price across market pairs, and (ii) the leader market hypothesis in any network of market pairs. The results suggest that integration fails to hold in many cases for over 60% of market pairs, while perfect integration is found to be considerably stronger for organized local markets such as Abuja and Lagos than for remote markets. There is evidence that Northeastern markets subject to the Boko Haram insurgency are weakly integrated with the other markets. Only three Northwest rural markets exhibit leading status in volatility prediction in different markets. The findings suggest that maize and millet markets located in Abuja and Lagos are the net receivers of price volatilities, and they are more exposed to price shocks originating from other markets. The pricing policy should mainly concentrate on leading markets as it will be efficiently transmitted to the followers.

Analisis Hukum Terhadap Praktik Insider Trading di Pasar Modal Indonesia: Tantangan dan Solusi

Indonesia's capital market has experienced significant growth, becoming a crucial pillar in supporting the national economy. However, maintaining market integrity and public trust is essential, as unfair trading practices like insider trading undermine transparency and fairness. Insider trading, involving the use of non-public material information for personal gain, continues to challenge Indonesia’s regulatory environment despite legal frameworks such as the Capital Market Law (Law No. 8 of 1995) and OJK regulations. This study aims to provide a comprehensive legal analysis of insider trading practices in Indonesia's capital market by identifying enforcement challenges, examining regulatory weaknesses, and proposing strategic solutions. Using a normative juridical approach with case studies, this research investigates real insider trading cases and evaluates regulatory and enforcement gaps. Findings indicate that limited resources, technological constraints, and unsynchronized regulations hinder effective enforcement. Furthermore, cultural factors such as low ethical awareness and prevalent nepotism in business exacerbate the issue. The study recommends strengthening regulations, investing in advanced monitoring technologies, and fostering ethical awareness among market participants. These measures are essential for building a fairer and more transparent capital market. Enhanced law enforcement, combined with cultural shifts towards ethical business practices, can protect market integrity, foster investor trust, and contribute to Indonesia’s economic stability and growth. This research contributes valuable insights to policymakers, regulators, and capital market stakeholders in developing a stronger legal and operational framework against insider trading in Indonesia.