Financial crisis and African stock market integration

Abstract

This article examines long-run relationships and short-run dynamic causal linkages among the five largest emerging African stock markets and the US market, with particular attention to the 1997–1998 global emerging market crisis. In general, interdependence between the African markets and the influence of the US on these markets was limited during 1996–2002. There is evidence that both long-run relationships and short-run causal linkages between these markets were substantially weakened after the crisis.