Economics at your fingertips  

An Assessment of the Degree of South Africa's Financial Integration into the World Economy

Lumengo Bonga-Bonga

The African Finance Journal, 2009, vol. 11, issue 2, 67-79

Abstract: This paper assesses the degree of financial integration between South Africa and the United States of America to infer South African’s financial integration into the world economy. The analysis is based on the covered interest parity whereby the mean reverting property of the covered interest differential, and the long-run equilibrium of the variables that constitute the covered interest parity, are examined. The paper finds that covered interest difference is mean reverting and its absolute mean decreases progressively during different periods of the analysis. This finding supports an increasing degree of South Africa’s financial integration into the world economy from 1993 to 2008.

JEL-codes: G10 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in The African Finance Journal from Africagrowth Institute Contact information at EDIRC.
Bibliographic data for series maintained by Kirk De Doncker ().

Page updated 2023-05-07
Handle: RePEc:afj:journl:v:11:y:2009:i:2:p:67-79