Working Paper: CEPR ID: DP12902
Authors: Giovanni Federico
Abstract: This paper surveys the literature on market integration. It builds on a previous survey on the integration of European markets (Federico 2012), extending the discussion to integration of markets in Asia and across oceans, and dealing also with the literature on causes and effects of integration. It argues that a lot of progress has been made, but still we are far from a comprehensive view of the issue. The most pressing needs are the definition of an implementable method to assess gains from integration and the collection of new data, most notably on products and areas other than cereals in Europe and on trade costs.
Keywords: market integration; development
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| liberalization of trade and technical innovation in transportation (F19) | price convergence (D41) |
| lower transportation costs (L91) | higher price convergence (D49) |
| abolition of trade barriers (F13) | reduced price dispersion (D49) |
| transportation infrastructure (R42) | market efficiency (G14) |
| political decisions (abolition of trade barriers) (F13) | market integration (F02) |
| speed of adjustment to price shocks (F16) | market efficiency (G14) |
| trade liberalization and technological advancements (F69) | market integration (F02) |