(2004) Risk sharing and counter-cyclical variation in market correlations. (2010) ' The role of South Africa in SADC regional integration: The making or braking of the organization', Journal of International Commercial Law and Technology, 5(3): 124-131.Īydemir, A. (2011) '.International financial integration, investment and economic performance in Sub-Saharan African countries', Global Economy Journal, 11(4): 1-26.Īmos, S. Item Type:įinancial integration, African trading blocs, factor model, DCC GARCHĬ - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C55 - Large Data Sets: Modeling and AnalysisĬ - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C58 - Financial Econometricsį - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic IntegrationĪhmed, A. Robustness test is conducted to support the results of the empirical analysis 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). Moreover, the finding of the paper shows a ‘decoupling’ between some of the trading blocs. The results of the empirical analysis show that not all countries within each of the three trading blocs are integrated to their regional factors. The paper suggests a measure of financial integration based on the combination of the dynamic conditional correlation-general autoregressive conditional heteroscedastic (DCC-GARCH) and factor models. This paper assesses 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). How financially integrated are trading blocs in Africa? Bonga-Bonga, Lumengo and Mabe, Queen Magadi