This paper investigates structural symmetry among Southern African Development Community (SADC) in order to evaluate the potential for monetary union among member countries. In particular, we check for compliance with OCA criteria, with specific reference to business cycle synchronization. SADC...

Since the 1950s, export credits have been an important source of finance in most African countries, where they allow more to be invested with less sacrifice of current consumption. This paper provides a framework for comprehensively measuring indebtedness and gives, therefore, a basis for...

This paper explores financial market convergence in East African economies by analysing the long-run volatility trends in the currencies of this region. In particular, a Component-GARCH model is estimated, which is able to distinguish short- and long-run volatility dynamics. Common movement of...

The flying geese model, a theory of industrial development in latecomer economies is used to explore the prospects of South Africa playing the role of a leading 'goose' in the economic development of Africa. The model forms one theoretical framework that has been advanced to explain the economic...

Despite increased co-movements in stock performance among developed economies, international portfolio investors have failed to diversify into African stock markets. Is the persistence of home bias in equities due to a possibility that African markets move in tandem with the rest of the world?...

A long-term objective of the East Africa Community treaty is to form a monetary union. This paper tests the viability of this proposal using a model of government finance that minimizes the social cost of financing government expenditure. The results indicate that the policies of these countries...

The paper examines the causal relationship between stock market development and economic growth in South Africa while controlling for the effect of banking variable. It applies vector error correction model (VECM), generalized impulse response function (GIRF) and variance decomposition (VDC). In...

This paper examines the factors that inhibit growth in the microfinance sector in Tanzania by measuring the perceptions about such issues among Microfinance Institutions (MFIs). The most important include the educational levels of clients, lack of capital to lend to clients and staff related...

Theory suggests that financial liberalisation, through increasing investment as well as the average productivity of capital, stimulates economic growth. Since bank-based financial deepening is often problematic due to adverse selection and moral hazard effects, the establishment and expansion of...

This paper examines the exchange rate exposure of South Africa's major commercial banks with the help of an augmented market model. In contrast to the weak empirical evidence in prior studies done abroad, this study reveals that all the four major banks exhibit significant foreign exchange risk....