Financial and monetary autonomy and interdependence between South Africa and the other SACU countries
- Authors: Aziakpono, Meshach J
- Date: 2008
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469764 , vital:77292 , https://doi.org/10.1111/j.1813-6982.2008.00173.x
- Description: The paper uses cointegration and error correction modelling techniques together with tests of weak exogeneity, and monthly interest rates for the period 1990 to 2005, to examine the degree of financial and monetary autonomy and interdependence between South Africa and the other Southern African Customs, Union (SACU) countries. The results reveal a high level of dependence of the other SACU countries' financial systems on South Africa's financial system, which suggests that a monetary unification with a single central bank (South African Reserve Bank) and monetary policy for the union is feasible.
- Full Text:
- Date Issued: 2008
- Authors: Aziakpono, Meshach J
- Date: 2008
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469764 , vital:77292 , https://doi.org/10.1111/j.1813-6982.2008.00173.x
- Description: The paper uses cointegration and error correction modelling techniques together with tests of weak exogeneity, and monthly interest rates for the period 1990 to 2005, to examine the degree of financial and monetary autonomy and interdependence between South Africa and the other Southern African Customs, Union (SACU) countries. The results reveal a high level of dependence of the other SACU countries' financial systems on South Africa's financial system, which suggests that a monetary unification with a single central bank (South African Reserve Bank) and monetary policy for the union is feasible.
- Full Text:
- Date Issued: 2008
Financial integration amongst the SACU countries: evidence from interest rate pass-through analysis
- Authors: Aziakpono, Meshach J
- Date: 2006
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469709 , vital:77287 , https://hdl.handle.net/10520/EJC21430
- Description: Using cointegration and error correction techniques, as well as impulse response analysis, the study examined the extent of interest rates pass-through to measure the degree of financial integration amongst the SACU countries. The results confirm the dominant role of South Africa in the Union and show that there exists a hierarchy of integration of the financial systems of each member state with that of South Africa, with Namibia at the top, followed by Swaziland, then Lesotho, with Botswana at the bottom. The results further suggest that the prevailing integration between the financial systems is mainly as a result of policy convergence, rather than market convergence, which suggest limited arbitrage opportunities between the countries. The lack of arbitrage opportunities is attributed to poor institutional developments and limited investment opportunities in the BLNS countries when compared to South Africa.
- Full Text:
- Date Issued: 2006
- Authors: Aziakpono, Meshach J
- Date: 2006
- Subjects: To be catalogued
- Language: English
- Type: text , article
- Identifier: http://hdl.handle.net/10962/469709 , vital:77287 , https://hdl.handle.net/10520/EJC21430
- Description: Using cointegration and error correction techniques, as well as impulse response analysis, the study examined the extent of interest rates pass-through to measure the degree of financial integration amongst the SACU countries. The results confirm the dominant role of South Africa in the Union and show that there exists a hierarchy of integration of the financial systems of each member state with that of South Africa, with Namibia at the top, followed by Swaziland, then Lesotho, with Botswana at the bottom. The results further suggest that the prevailing integration between the financial systems is mainly as a result of policy convergence, rather than market convergence, which suggest limited arbitrage opportunities between the countries. The lack of arbitrage opportunities is attributed to poor institutional developments and limited investment opportunities in the BLNS countries when compared to South Africa.
- Full Text:
- Date Issued: 2006
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