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Dynamic effects of blockchain on financial markets: evidence from TVP-Bayesian VAR with a connectedness approach

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  • Martin M. Bojaj

    (Central Bank of Montenegro)

Abstract

The study analyzes the impact of blockchain adoption in the financial markets in Montenegro. Specifically, we study the connectedness of macroeconomic variables, financial markets, foreign direct investments (FDI), and main financial stability indicators. Contrary to assumptions, the adoption and transition in the short run is a painful process. In the medium run, blockchain technology absorbs an enormous amount of FDI. We conclude that adoption apparatus policies should not be based only on conventional assumptions and reveal the mechanism of key gaps by a prudential authority.

Suggested Citation

  • Martin M. Bojaj, 2025. "Dynamic effects of blockchain on financial markets: evidence from TVP-Bayesian VAR with a connectedness approach," Empirical Economics, Springer, vol. 68(5), pages 2159-2197, May.
    • Handle: RePEc:spr:empeco:v:68:y:2025:i:5:d:10.1007_s00181-024-02696-8
    DOI: 10.1007/s00181-024-02696-8
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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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