A Reassessment of Stock Market Integration in SADC: The Case of Namibia

A Reassessment of Stock Market Integration in SADC: The Case of Namibia

Author: 
Hearn, Bruce
Place: 
Oxon
Publisher: 
Taylor and Francis
Date published: 
2020
Record type: 
Responsibility: 
Piesse, Jenifer, jt. author
Journal Title: 
Development Southern Africa
Source: 
Development Southern Africa Vol 37 No 3 2020 pp 501-518
Abstract: 

A major feature of development policy modelled on neoclassical notions of financial market integration is that a wide array of smaller markets can benefit from integration by pooling resources and attracting foreign capital to supplement otherwise low levels of domestic investment. However, evidence from Namibia and South Africa suggest that the smaller markets become regulatory price-takers and to maintain the benefits from integration, face prohibitively high costs. We find evidence that the current policy initiatives of regional integration impose costs on smaller, less developed exchanges, which are ultimately borne by local firms seeking cost-effective sustainable external finance.

Language: 
Country focus: 

CITATION: Hearn, Bruce. A Reassessment of Stock Market Integration in SADC: The Case of Namibia . Oxon : Taylor and Francis , 2020. Development Southern Africa Vol 37 No 3 2020 pp 501-518 - Available at: http://library.au.int/reassessment-stock-market-integration-sadc-case-namibia