A reassessment of stock market integration in SADC: the case of Namibia
A reassessment of stock market integration in SADC: the case of Namibia
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.
Africa, Emerging Economies, Integration, Micro markets, Stock exchange financing
501-518
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Piesse, Jenifer
6a7a2368-cfa0-4a8f-8bf7-5f9d745593b8
3 May 2020
Hearn, Bruce
45dccea3-9631-4e5e-914c-385896674dc2
Piesse, Jenifer
6a7a2368-cfa0-4a8f-8bf7-5f9d745593b8
Hearn, Bruce and Piesse, Jenifer
(2020)
A reassessment of stock market integration in SADC: the case of Namibia.
Development Southern Africa, 37 (3), .
(doi:10.1080/0376835X.2020.1717928).
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.
Text
Namibia_2011_new BH 16-Sept-2019
- Accepted Manuscript
More information
Accepted/In Press date: 14 January 2020
e-pub ahead of print date: 30 January 2020
Published date: 3 May 2020
Additional Information:
Funding Information:
The authors thank Keith Jefferis, Kate Phylaktis, Ven Tauringana and Collins Ntim for valuable help and comments.
Publisher Copyright:
© 2020, © 2020 Government Technical Advisory Centre (GTAC).
Keywords:
Africa, Emerging Economies, Integration, Micro markets, Stock exchange financing
Identifiers
Local EPrints ID: 437819
URI: http://eprints.soton.ac.uk/id/eprint/437819
ISSN: 0376-835X
PURE UUID: f832cf14-4ede-4c76-b5e2-37f6e0a84243
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Date deposited: 19 Feb 2020 17:31
Last modified: 17 Mar 2024 03:52
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Author:
Jenifer Piesse
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