Qual Quant (2014) 48:1347–1360
Extreme value analysis for emerging African markets
Saralees Nadarajah · Stephen Chan ·
Published online: 20 February 2013
© Springer Science+Business Media Dordrecht 2013
Abstract For the ﬁrst time, an extreme value analysis is provided for ﬁnancial data from
Africa. The results of analysis show evidence of emerging economies in Africa.
Keywords Africa · Generalized extreme value distribution · Trends
Africa is the birthplace of humanity. Yet almost everything reported in the Western
media/Western literature paints a very negative picture of Africa. This gives the impression
that there is nothing positive to report about Africa or Africans.
It is our belief that Africans are very kind, very hospitable and peace loving human beings.
They are as intelligent as any others. Many papers have appeared in the Western literature
(see, for example, Rushton and Jensen 2008 and Rushton 2012) claiming that Westerners
are more intelligent than Africans. These papers are based on mere measures of intelligence
which were themselves devised by Westerners. Appropriateness of these measures to measure
intelligence of Africans is highly questionable, see Kamin (2006). These papers only promote
the racist views of some Westerners.
Wars, famines and tragedies occur in every part of the world, not just in Africa. It is
possible such incidents have occurred more often in Africa. But the Western society has used
these incidents only to show off their hospitality and for their own beneﬁts. The real beneﬁts
to the Africans have been little or none.
The attitude of the Western society towards Africa and Africans is evident from every
discipline. As statisticians ourselves, we now give two examples from the statistics literature:
• Jackson et al. (2010) study the relationship between climate change and prevalence of
malaria in western Africa. They conclude that the relationship is not signiﬁcant. In our
opinion, this study does not add anything to the millions of Africans dying every year
S. Nadarajah (
) · S. Chan · E. Afuecheta
School of Mathematics, University of Manchester, Manchester M13 9PL, UK