Regional Integration of Equity Markets in Sub-Saharan Africa

Piesse, Jenifer and Hearn, Bruce (2005) Regional Integration of Equity Markets in Sub-Saharan Africa. South African Journal of Economics, 73 (1). pp. 36-52. ISSN 0038-2280

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Equity markets in developing and emerging economies have grown in number and importance as a result of financial market globalisation. However, their role in economic growth and development is enhanced if nascent markets are integrated with well-established ones. Market integration, measured by the transmission of returns volatility, is identified across a sample of SSA countries, using a unique dataset. Evidence for potential integration between financial markets in Sub-Saharan Africa (SSA) is found. Spillovers are found across markets, some unidirectional and others bi-directional. However, continued illiquidity and incomplete institutions indicate that an integrated financial community remains premature, and considerable regulatory reform and harmonisation will be necessary for this to succeed.

Item Type: Article
Schools and Departments: University of Sussex Business School > Business and Management
Subjects: H Social Sciences > HG Finance > HG3810 Foreign exchange. International finance. International monetary system
H Social Sciences > HG Finance > HG4001 Finance management. Business finance. Corporation finance
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Depositing User: Bruce Hearn
Date Deposited: 23 Apr 2012 14:56
Last Modified: 03 Jul 2019 01:17

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