How financially integrated are trading blocs in Africa?
No 10580, EcoMod2017 from EcoMod
This paper endeavours to assess the degree of financial integration between three African trading blocs, namely, the Common Market of Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC). For this end, the paper suggests a combination of the dynamic conditional correlation general autoregressive conditional heteroscedastic (DCC-GARCH) and factor models. the results of the empirical analysis show that countries within each of the three trading blocs are not all integrated to their regional factors. Moreover, the finding of the paper shows a 'decoupling' between some of the trading blocs. Robustness test is conducted to support these results and shows that the proposed method provides a better way to measure integration than other methods, such as the multi-factor R-square method proposed by Pukthuanthong and Roll (2009).
Keywords: Eastern and Southern Africa; Trade and regional integration; Developing countries (search for similar items in EconPapers)
JEL-codes: F00 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://ecomod.net/system/files/%20Bonga-Bonga_Research%20Article.pdf [301 Moved Permanently]--> https://ecomod.net/system/files/%20Bonga-Bonga_Research%20Article.pdf)
Journal Article: How financially integrated are trading blocs in Africa? (2020)
Working Paper: How financially integrated are trading blocs in Africa? (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ekd:010027:10580
Access Statistics for this paper
More papers in EcoMod2017 from EcoMod Contact information at EDIRC.
Bibliographic data for series maintained by Theresa Leary ().