Spatial Integration of Siberian Regional Markets

Gluschenko, Konstantin (2018): Spatial Integration of Siberian Regional Markets.

Abstract

This paper studies market integration of 13 regions constituting Siberia with one another and all other Russian regions. The law of one price serves as a criterion of market integration. The data analyzed are time series of the regional costs of a basket of basic foods (staples basket) over 2001–2015. Pairs of regional markets are divided into four groups: perfectly integrated, conditionally integrated, not integrated but tending towards integration (converging), and neither integrated nor converging. Nonlinear time series models with asymptotically decaying trends describe price convergence. Integration of Siberian regional markets is found to be fairly strong; they are integrated and converging with about 70% of country’s regions (including Siberian regions themselves).

• Item Type: MPRA Paper
• Language: English
• Keywords: market integration law of one price price convergence nonlinear trend Russian regions
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; L - Industrial Organization > L8 - Industry Studies: Services > L81 - Retail and Wholesale Trade ; e-Commerce; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P22 - Prices; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R15 - Econometric and Input-Output Models ; Other Models

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