Political Crises and Risk of Financial Contagion in Developing Countries: Evidence from Africa

Abstract

The recent waves of political crises in Africa and the Middle East have inspired the debate over how political instability could pose a risk of financial contagion to emerging countries. With retrospect to the Kenyan political crisis, our findings suggest stock markets in Lebanon, Mauritius and Nigeria were contaminated.Political crisis; Contagion; Developing countries; Equity Markets