Impact of Education, GDP And Institutional Frameworks on Cryprocurrency – A Case Study on Developing and Developed Countries

Abstract

The relationship between cryptocurrency trading volumes, education, GDP and institutional framework within a country i.e. Corruption Perceivable Index in the developing and developed countries for the years 2013 to 2020 utilizing Dynamic Ordinary Least Square (D-OLS), Pearson Correlation, Spearman Correlation and Kendall Correlation analysis is investigated in this study. The behaviour of cryptocurrency trading volumes of developing countries with respect to Corruption Perceivable Index is significant as per the empirical results which show that Corruption Perceivable Index are directly linked with cryptocurrency trading volumes i.e. developing countries with high Corruption Perceivable Index (less corruption) are having higher trading volumes of cryptocurrency but for the case of developed countries cryptocurrency trading volumes are not having any significant behavioural relationship with GDP, Corruption Perceivable Index and education. These findings are strengthened by superimposing the results retrieved from all the four methods mentioned above. This study will be beneficial for policymakers of the emerging markets as they should pay more attention to the institutional aspects impacting the levels of corruption within their country which will lead to the expansion of cryptocurrency market and ultimately the growth financial sector in their country.