COVID-19's effect on the spatial integration of fish markets: Evidence from carp price in China

While curbing the spread of Coronavirus Disease 2019 (COVID-19), lockdown policies and "stay-at-home" restrictions caused massive supply chain disruptions worldwide. This led to breaks in spatial market integration, which could further lead to market inefficiency and resource misallocation. Taking daily price data from 2016 to 2021, this study investigates COVID-19's effect on the spatial market integration of fish in China using cointegration tests. We find a high degree of spatial market integration for fish in China before the COVID-19 pandemic. Further, our results show that COVID-19's effect on the spatial market integration of fish varies spatially in China. Specifically, COVID-19 reduces the degree of spatial market integration in most provinces, especially those with high infection rates. Meanwhile, the degree of spatial market integration in provinces with low infection rates remains high. Therefore, the government should be regionally specific when formulating market recovery policies.