Granger Causality Approach to Examining Stock Market Integration in West Africa

Stock markets have been found to be increasingly interdependent overtime due to activities related to internationalization, diversification, integration, and globalization. This study assesses the lead/lag interactions between equity markets in the West Africa viz a viz the United States (US) and the United Kingdom (UK) markets. Stock market index data were analyzed from 2008 - 2016 using the Granger causality test. Findings from the study indicates both uni-directional and bi-directional causality between most of the market pairs implying that none of the market exists in autarky.