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African Stock Market Performance Dynamics: A Multidimensional Convergence Assessment

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  • Asongu Simplice

    ()

    (Yaoundé/Cameroun)

Abstract

This paper dissects with great acuteness, the issues of convergence in financial performance dynamics in the African continent through the lenses of stock market capitalization, value traded, turnover and number of listed companies. The empirical evidence is premised on 11 homogenous panels based on regions (sub-Saharan and North Africa), income-levels (Low, Middle, Lower-middle and Upper-middle), legal-origins (English common-law and French civil-law) and religious dominations (Christianity and Islam). Findings provide partial support for the existence of absolute convergence in some dynamics. Only sub-Saharan Africa reveals conditional convergence in relation to per capita number of listed companies. The speed of convergence for the most part is between 12% and 28% per annum. As a policy implication, countries should work towards adopting common institutional and structural characteristics that favor stock market development.

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File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/Convergence-in-African-Stock-Market-Performance-Dynamics.pdf
File Function: Revised version, 2013
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Paper provided by African Governance and Development Institute. in its series Working Papers with number 12/004.

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Length: 41
Date of creation: 19 Jan 2012
Date of revision:
Publication status: Forthcoming: Journal of African Business
Handle: RePEc:agd:wpaper:12/004
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Keywords: Convergence; Stock markets; Panel; Africa;

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Find related papers by JEL classification:
  • F30 - International Economics - - International Finance - - - General
  • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
  • G20 - Financial Economics - - Financial Institutions and Services - - - General
  • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
  • P50 - Economic Systems - - Comparative Economic Systems - - - General

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