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Should Africa’s emerging markets still be considered as a separate asset class?

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  • Gideon Boako
  • Paul Alagidede

Abstract

This article examines the correlation of Africa’s emerging markets regionally and globally using the Continuous Morlet Wavelet (CMW) transform. The superiority of this technique is that it is able to estimate correlation in a time-varying manner and derive all information about structural changes in the data through a phase difference technique. We find that Africa’s emerging equity markets are partially segmented regionally and globally. Although correlations may have increased over time, we suggest that emerging markets in Africa should still be considered as a separate asset class.

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  • Gideon Boako & Paul Alagidede, 2017. "Should Africa’s emerging markets still be considered as a separate asset class?," Applied Economics Letters, Taylor & Francis Journals, vol. 24(1), pages 61-66, January.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:1:p:61-66
    DOI: 10.1080/13504851.2016.1161711
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    Cited by:

    1. Adeabah, David & Abakah, Emmanuel Joel Aikins & Tiwari, Aviral Kumar & Hammoudeh, Shawkat, 2023. "How far have we come and where should we go after 30+ years of research on Africa's emerging financial markets? A systematic review and a bibliometric network analysis," Emerging Markets Review, Elsevier, vol. 55(C).
    2. Bello, Jaliyyah & Guo, Jiaqi & Newaz, Mohammad Khaleq, 2022. "Financial contagion effects of major crises in African stock markets," International Review of Financial Analysis, Elsevier, vol. 82(C).

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