African stock markets convergence: Regional and global analysis

- The letter examines both regional and global convergence of African stock markets.
- Analysis is conducted within the “market convergence hypothesis” framework.
- Results show some African equity markets' partial deterministic convergence with global and regional markets.
- We infer that African stocks should still be considered as a separate asset class from global counterparts.

This letter examines the convergence of Africa's equity markets within the income convergence thesis. The results indicate partial deterministic convergence of Africa's equity markets both globally and regionally. The findings contribute to extant literature by addressing the puzzle on whether or not emerging equity markets should still be considered as a separate asset class or a unit bucket of assets with those in the developed world.