Theoretical and Applied Economics
No. 2 / 2024 (639), Summer
Impact of crypto currencies on performance of stock returns: Evidence from BRICS countries
GITAM University, India
Rajaswaminathan S.
University of Technology, Oman
Abstract. The interlink-ages between crypto currencies and stock indices in a panel of BRICS economies are empirically examined in this study. The panel of econometric techniques namely Levin, Lin and Chu (LLC) panel unit root test, Johansen Fisher, Pedroni, and Kao Panel cointegration, Dumitrescu and Hurlin panel granger causality, the fixed effects model and IV-GMM models are applied for empirical investigation. For analysis, both daily and quarterly panel data of BRICS stock indices namely BOVESPA Index (Brazil), MOEX Index (Russia), NIFTY 50 Index (India), SSE Composite Index (China), and FTSE Index (South Africa), as well as the Bitcoin (BTC), Ethereum (ETH), Binance (BNB) and macro-economic variables are all obtained through world bank and investing.com from December 2017 to December2023. The result of fixed effects and IVGMM models suggests that the performance of stock indices in BRICS countries negatively impacted by crypto currencies, inflation and oil prices, whereas, real GDP has positively impacted the stock indices in these five economies. Panel Causality test result confirms a short run relationship exists between crypto currencies and stock indexes. The findings also indicated that a long-run equilibrium relationship do not exhibit between crypto currencies and BRICS stock indices. Based on our findings, suitable policy is recommended to regulate the crypto currency market.
Contents
Performance and risk – a changing and complex relationship for banking business
Impact of inflation and exchange rate on stock market returns in India: An ARDL approach
Westphalian order in pan-Arabism culture societies
The generational divide – A debate on technology and the decision-making process
The trend of FDI inflows and its impact on the Indian economy
Effects of exchange relative prices on macroeconomic stability in sub-Saharan African countries
Crowding-out, home bias and financial stability in the aftermath of the sovereign debt crisis
Is there convergence or divergence in per capita energy consumption in sub-Saharan African countries?
Financial transformation through digitalisation: India’s dual path of cash and cashless transaction
Nexus between global financial integration and economic growth: An ARDL approach
Integration of ESG principles: An initiative for transformation from Linear Economy to Circular Economy
European funds for sustainable transport and economic growth
What drives Tunisian economic growth: urbanization or rural development?
Impact of crypto currencies on performance of stock returns: Evidence from BRICS countries
Forecasting gold price and inflation for India and US: An analysis of ARIMA and Holt Winters models
ESG Global Score Indicator – The new sovereign rating Case study – European Union
Assessing the adoption of corporate social responsibility on developing countries: Case of Jordan
ICT and economic growth: Evidence from lower-middle income countries of South Asia
Future of cryptocurrency in India
The fintech frontier: Investigating fintech entrepreneurial intentions in the light of fintech awareness