Abstract The paper analyses the extent of stock market integration in SADC by first analyzing beta and sigma convergence and then using cointegration analysis. The US market and the SSA index were used as benchmarks. The sample period was from January 1999 to December 2011 using daily market index data. We observe beta convergence but not sigma convergence; though the sigma values are falling for most of the SADC countries. Under normal conditions, no cointegrating vector was identified when using the US market as benchmark. When using the SSA index as benchmark one cointegrating vector was identified. The paper also takes stock of the extent of software and hardware stock market integration in SADC. The SADC stock exchanges must work towards greater integration so that they can attract more sustained portfolio flows rather than volatile portfolio flows and also greater FDI flows which are much needed for the financial and economic development of the SADC countries. We also need to consolidate and reduce the number of exchanges with the view to improve market capitalization, liquidity, market infrastructure, governance amongst others but most importantly to increase the visibility, robustness and reputation of SADC stock markets at the international level.

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南部非洲发展共同体（南部非洲发展共同体）的股票市场发展和一体化

摘要本文首先通过分析β和sigma的收敛性，然后使用协整分析来分析SADC中股票市场整合的程度。以美国市场和SSA指数为基准。使用每日市场指数数据，样本时间为1999年1月至2011年12月。我们观察到β收敛，而不是σ收敛；尽管大多数南共体国家的sigma值都在下降。在正常情况下，以美国市场为基准时，没有发现协整向量。当使用SSA指数作为基准时，确定了一个协整向量。本文还评估了SADC中软件和硬件股票市场整合的程度。南部非洲发展共同体的证券交易所必须努力实现更大的一体化，以便它们能够吸引更持久的证券投资流，而不是动荡的证券投资流，以及更大的外国直接投资流量，这是南部非洲发展共同体国家的金融和经济发展所迫切需要的。我们还需要巩固和减少交易所数量，以改善市值，流动性，市场基础设施，治理等，但最重要的是要提高SADC股票市场在国际上的知名度，稳健性和声誉。