Volume 18, Issue 4 (12-2023)
J. Mon. Ec. 2023, 18(4): 511-546 |
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Hafezi E, Najarzadeh R, Heydari H, Hosseini S S. The Role of Adoption and Expansion of Global Cryptocurrencies in Financial Globalization. J. Mon. Ec. 2023; 18 (4) : 5
URL: http://jme.mbri.ac.ir/article-1-660-en.html
URL: http://jme.mbri.ac.ir/article-1-660-en.html
1- Faculty of Management & Economics, Tarbiat Modares University
2- Faculty of Economics, Allameh Tabataba'i University
2- Faculty of Economics, Allameh Tabataba'i University
Abstract: (322 Views)
In international trade and financial exchanges, global cryptocurrencies have a prominent and effective role. In this paper, using the KOF index, the structure of financial globalization is extracted and the effect of the expansion of global cryptocurrencies is examined in the two components: Foreign Direct Investment and Portfolio Investment. The Ordinary Least Squares (OLS) model has been used separately for 2020, 2021, and 2022 to analyze the results of the expansion of global cryptocurrencies in the foreign direct investment component. Also, the price changes of Bitcoin and Ethereum from March 10, 2016, to the end of December 2022 have been used to investigate the effect of global cryptocurrencies in portfolio investment by applying Modern Portfolio Theory (MPT). Also, according to the availability of data in research sources, the data of 111 countries have been used. OLS estimated results suggest that the adoption and expansion of global cryptocurrencies has no significant relationship with Foreign Direct Investment. Also, using MPT, the results of portfolio optimization suggest that global cryptocurrencies improve the effectiveness of the selected portfolios, and with the same corresponding returns, the risk of the portfolios including global cryptocurrencies decreases as well. Therefore, the results emphasize the role of global cryptocurrencies in financial globalization only as crypto-assets.
Article number: 5
Keywords: Global Cryptocurrencies, Financial Globalization, Foreign Direct Investment, Portfolio Investment, OLS, Modern Portfolio Theory.
Type of Study: Original Research - Empirical |
Subject:
Economics
Received: 30 Apr 2024 | Accepted: 9 Oct 2024 | Published: 18 Feb 2025
Received: 30 Apr 2024 | Accepted: 9 Oct 2024 | Published: 18 Feb 2025
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