Citation:

Ebi Georges Fossou. "Analysis of the Link between West African Stock Markets" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 61-66, 2023.

Abstract:

This study uses annual data from 1993 to 2020 to examine potential long- and short-term linkages and correlations between the market capitalizations of the WAEMU, Ghana, and Nigeria stock markets. According to the early test results, the Ghanaian and Nigerian stock markets exhibit strong connections with the WAEMU stock market, with correlation coefficients ranging from -0.006 to -0.614. The results of the cointegration estimates show a substitution effect between the WAEMU and Ghanaian markets and a complementarity effect between WAEMU and Nigerian markets. The findings also imply that there is a connection between the stock markets, and that connection depends on the proximity of the markets.

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Keywords:

BRVM Stock Market, Long-Term Relationship, Stock Market Integration, Johansen Cointegration.