SPATIAL INTEGRATION ANALYSIS OF METAL PRODUCTION MARKETS

The significance of the metallurgical industry for the economy of Russia is noted in the vector of new industrialization. At the same time the structural changes of the consumer market of metal products are clarified taking into account the conservation of the energy sector as part of prospective customers. The relevance of spatial integration of branch markets is described according to the problem of new industrialization of the national economy. Model-based evaluation of the integration of the domestic consumer market, proposed by K.P. Glushchenko, conducted an analysis of interregional integration of submarkets of metal production of varied quality, focused on the construction and energy sectors as an example of branch markets. The criteria for assessing the metallurgical products market integration is the law of one price, involving the establishment of a single price for identical goods in the territory of different segments of spatially-separated market in the absence of obstacles to the movement of goods between them. Autoregression (AR) model was constructed and it allowed to estimate the rate of prices convergence for each federal district to the national average, as well as to other districts. This approach allowed us to compare the branch markets of high-tech, qualitative and traditional metal by the spatial integration level. The results showed fairly low integration level of the regions in all three submarkets. In this case, for each of them is observed a different structure of integration interactions. According to the results of the study, a map of the spatial integration was compiled for the high-tech metal product market focused on the oil and gas sector, which refl ects the convergence of territories by the price level convergence in the time series model. It was found that there is no infl uence of geographical remoteness of the market segments in the speed of convergence of prices between regions. It was concluded that there is the possibility of considering indicators of spatial integration of industrial markets for assessing the external environment uncertainties in the implementation of the new industrialization of Russia’s economic strategy. The development of integration ties helps to reduce market risks and to create positive multiplicative and synergistic effects.

market integration, auto-regressive model, law of one price, interregional relations, high-tech metal products

1. Romanova O.A. Strategic vector of economic dynamics of an indust rial region. Economy of Region. 2014, no. 1, pp. 43–55. (In Russ.).

2. Romanova O.A., Sirotin D.V. New technological shape of basic branches of RF industrial regions. Economic and Social Changes: Facts, Trends, Forecast. 2015, no. 5, pp. 27–43.

3. An E.A., An A.E. Spatial integration of science, education and production as a factor in increasing the competitiveness of regional economies. Vestnik Altaiskoi nauki. 2015, no. 3, 4, pp. 88–95. (In Russ.).

4. Gadzhiev Yu.A. Foreign theory of regional economic growth and development. Ekonomika regiona. 2009, no. 2, pp. 45–62. (In Russ.).

5. Glushchenko K.P. The law of one price in the Russian economic space. Prikladnaya ekonometrika. 2010, no. 1, pp. 3–19. (In Russ.).

6. Tsyplakov A.A. Evaluation of the quality of probabilistic forecasts: correct scoring rules and points. Prikladnaya ekonometrika. 2012, no. 3, pp. 115–132. (In Russ.).

7. Berkowitz D., DeJong D. N., Husted S. Quantifying price liberalization in Russia. J. of Comparative Economics. 1998, vol. 26, no. 4, pp. 735–760. DOI:10.1006/jcec.1998.1555

8. Gardner B., Brooks K. Food prices and market integration in Russia: 1992-93. American Journal of Agricultural Economics. 1994, no. 76, pp. 641–646.

9. Gluschenko K. Russia’s common market takes shape: price convergence and market integration among Russian regions. BOFIT Discussion Paper. 2006, no. 7. 31 p.

10. Koen V., de Masi P. Prices in the transition: ten stylized facts. IMF Working Paper. 1997, no. 158. 55 p.

11. Obstfeld M., Taylor A.M. Sovereign risk, credibility and the gold standard: 1870-1913 versus 1925-31*. The Economic Journal. 2003, vol. 113, no. 487, pp. 241–275.

12. Paulo M.M. Rodrigues Recursive adjustment, unit root tests and structural breaks. Journal of Time Series Analysis. 2013, no. 1, pp. 62–68.

13. Gluschenko K. Distribution dynamics of Russian regional prices. William Davidson Institute. Ann Arbor: MI, 2013. 24 p.

14. Goodwin B.K., Schroeder T.C. Cointegration tests and spatial price linkages in regional cattle markets // American Journal of Agricultural Economics. 1991. No. 73. P. 452–464.

15. Barmin V. Infographics: patterns of information fl ows sharing and volatility spillovers. Review of Business and Economics Studies. 2015, no. 2, pp. 67–68.

16. Hai an N. Exchange rate management in Vietnam for sustaining stable and long-term economic growth. Review of Business and Economics Studies. 2015, no. 2, pp. 58–66.