Are African stock markets intergrated? The case of JSE and selected African stock markets

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Date

2014-09-30

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Publisher

University of Fort Hare

Abstract

Generally African stock markets are deemed to be small, segmented and illiquid. The study utilises monthly data for the period of 2000 to 2008, employing the Johansen and Julius cointegration method to determine the long run relationship between the five selected African stock markets. Granger causality test were also conducted to establish if there is any causal links between the stock markets in Africa. The analysis in the study indicates that African stock markets are improving in performance generally, growing and developing. However empirical results indicate that African markets are segmented. A further analysis, to determine the relationship between the five selected African stock markets and the world stock markets, show that African stock markets are affected by developments in the international markets. Hence portfolio diversification opportunities exist in the African stock markets suggesting that investors should also consider investing in their African countries as they offer opportunities rather than considering investing in the international markets only.

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Keywords

SOCIAL SCIENCES::Business and economics::Economics, Africa

Citation

Chamisa,S.F.(2014).Job insecurity and Work-family conflict in relation to Job engagement in the Energy Industry in selected organisations in Amathole District.Alice: University of Fort Hare