The State of Convergence in SADC
The Southern African Development Community (SADC) Treaty established an integration agenda for the grouping culminating in the introduction of a common currency by 2018. By determining the degree of macroeconomic convergence across countries it becomes possible to draw conclusions with respect to the feasibility of the envisaged integration agenda of a regional integration scheme. In order to test for convergence among southern African countries the panel unit root test proposed by Im, Pesaran, and Shin (2003) is conducted. The results of the convergence analysis suggest that countries converge towards South Africa.
