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Regional Specialisation Of Markets In Europe - Essay Example

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This essay "Regional Specialisation Of Markets In Europe" discusses that for many years the market has been evolving and each day has often been met with the urge to make the market efficient. The urge for efficiency has led to the need to integrate…
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Download file to see previous pages However, these activities have been affected by the current trends in the market. They are either partly impeded or bent in certain ways by the national policies or regulations.
The definition of market integration is varied among policymakers and experts and it is based on a criterion of interest or a particular notion. The concept of market integration can be described as an indicator of processes of market inter-relationships that are characterized by tradability and as a result the movement of market prices to one side. The concept of market integration can also be viewed as the outcome of the inter-market processes that are measured by the arbitrage conditions.
A general definition of market integration is the outcome criterion where the existence of an ideal competitive equilibrium between markets ensures that the markets that take full advantage of the price differences are off the market. Market integration requires the movement of goods and information across time, form and space (Isaac 2007, p7). Thus, market integration processes are described by complex interactions between the private and public activities in respect to the market expansion (Pelkmans 1984, p2). The purpose of market integration is to remove national hindrances and it depends on transaction costs, political costs, and transport costs.
As a region evolves in its transport sector, the impact on the regional economy is quite significant. The regional economy is impacted in the form of specialization. The changes in transport linkages, web, and flow generate a change in the land pattern. Thus, transport changes have a comparative advantage that may bring about regional specialization. Regional specialization begins when there is transport linkage between two or more cities. ...Download file to see next pagesRead More
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