Global Journal of Management and Business Research, B: Economics and Commerce, Volume 23 Issue 3

© 2023. Ebi Georges Fossou. This research/review article is distributed under the terms of the Attribution-NonCommercial- NoDerivatives 4.0 International (CC BYNCND 4.0). You must give appropriate credit to authors and reference this article if parts of the article are reproduced in any manner. Applicable licensing terms are at https://creativecommons.org/licenses/by-nc-nd/4.0/. Global Journal of Management and Business Research: B Economics And Commerce Volume 23 Issue 3 Version 1.0 Year 2023 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Cointegration and Interdependence of West African Stock Markets By Ebi Georges Fossou University Alassane Ouattara Abstract - This paper aims at analysing the potential long-run and short-run linkage and relationships between the market capitalizations of the WAEMU, Ghana, and Nigeria stock markets using annual data from 1993 to 2020. The results of the preliminary tests reveal a correlation coefficient ranging from -0.006 to -0.614 which states that the Ghanaian and Nigerian stock markets have substantial correlations with the WAEMU stock market. The results of the cointegration estimates show a substitution effect between the WAEMU and Ghanaian markets and a complementarity effect between WAEMU and Nigerian markets. Furthermore, the results suggest that the stock markets are interconnected and the link depends on the proximity between them. Keywords: BRVM stock market, long-term relationship, stock market integration, johansen cointegration. GJMBR-B Classification: JEL Code: B26, C58, D53, F15 CointegrationandInterdependenceofWestAfricanStockMarkets Strictly as per the compliance and regulations of: