IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/115237.html
   My bibliography  Save this paper

Do national development factors affect cryptocurrency adoption?

Author

Listed:
  • Bhimani, Alnoor
  • Hausken, Kjell
  • Arif, Sameen

Abstract

The adoption of cryptocurrencies is uneven across businesses, industries, and countries. Different forces drive cryptocurrency adoption (CA) dependent on the national level of development. We empirically assess the relationship between certain macro-national developmental indicators and cryptocurrency deployment across 137 countries. Linear regressions determine specific associations with cryptocurrency adoption. We report that CA correlates positively and in decreasing order with Education, the Human Development Index, the Network Readiness Index, the Gini index, Democracy, Regulatory Quality, and Gross Domestic Product, and negatively and in decreasing order with Control of Corruption, the Corruption Perception Index, and the Economic Freedom Index. We draw on our findings to point to policy implications tied to the usage of cryptocurrencies and blockchain technologies more widely and identify further research possibilities.

Suggested Citation

  • Bhimani, Alnoor & Hausken, Kjell & Arif, Sameen, 2022. "Do national development factors affect cryptocurrency adoption?," LSE Research Online Documents on Economics 115237, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:115237
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/115237/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Allen, Sarah & Capkun, Srdjan & Eyal, Ittay & Fanti, Giulia & Ford, Bryan & Grimmelmann, James & Juels, Ari & Kostiainen, Kari & Meiklejohn, Sarah & Miller, Andrew & Prasad, Eswar & Wüst, Karl & Zhang, 2020. "Design Choices for Central Bank Digital Currency: Policy and Technical Considerations," IZA Discussion Papers 13535, Institute of Labor Economics (IZA).
    2. Tchamyou, Vanessa S. & Erreygers, Guido & Cassimon, Danny, 2019. "Inequality, ICT and financial access in Africa," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 169-184.
    3. Ed Saiedi & Anders Broström & Felipe Ruiz, 2021. "Global drivers of cryptocurrency infrastructure adoption," Small Business Economics, Springer, vol. 57(1), pages 353-406, June.
    4. W. Craig Riddell & Xueda Song, 2017. "The Role of Education in Technology Use and Adoption: Evidence from the Canadian Workplace and Employee Survey," ILR Review, Cornell University, ILR School, vol. 70(5), pages 1219-1253, October.
    5. Ahmet Faruk Aysan & Behar Sadriu & Humeyra Topuz, 2020. "Blockchain Futures In Cryptocurrencies, Trade And Finance: A Preliminary Assessment," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 23(4), pages 525-542, December.
    6. Mr. John Kiff & Jihad Alwazir & Sonja Davidovic & Aquiles Farias & Mr. Ashraf Khan & Mr. Tanai Khiaonarong & Majid Malaika & Mr. Hunter K Monroe & Nobu Sugimoto & Hervé Tourpe & Peter Zhou, 2020. "A Survey of Research on Retail Central Bank Digital Currency," IMF Working Papers 2020/104, International Monetary Fund.
    7. Asongu, Simplice A. & Le Roux, Sara, 2017. "Enhancing ICT for inclusive human development in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 44-54.
    8. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 503-530.
    9. Wiston Adrián Risso & Edgar J. Sánchez Carrera, 2019. "On the impact of innovation and inequality in economic growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(1), pages 64-81, January.
    10. Finkelstein Shapiro, Alan & Mandelman, Federico S., 2021. "Digital adoption, automation, and labor markets in developing countries," Journal of Development Economics, Elsevier, vol. 151(C).
    11. Hughes, Laurie & Dwivedi, Yogesh K. & Misra, Santosh K. & Rana, Nripendra P. & Raghavan, Vishnupriya & Akella, Viswanadh, 2019. "Blockchain research, practice and policy: Applications, benefits, limitations, emerging research themes and research agenda," International Journal of Information Management, Elsevier, vol. 49(C), pages 114-129.
    12. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    13. Angelis, Jannis & Ribeiro da Silva, Elias, 2019. "Blockchain adoption: A value driver perspective," Business Horizons, Elsevier, vol. 62(3), pages 307-314.
    14. Abhijit Banerjee & Esther Duflo & Clément Imbert & Santhosh Mathew & Rohini Pande, 2020. "E-governance, Accountability, and Leakage in Public Programs: Experimental Evidence from a Financial Management Reform in India," American Economic Journal: Applied Economics, American Economic Association, vol. 12(4), pages 39-72, October.
    15. Tellman, Beth & Eakin, Hallie & Janssen, Marco A. & de Alba, Felipe & Turner II, B.L., 2021. "The role of institutional entrepreneurs and informal land transactions in Mexico City’s urban expansion," World Development, Elsevier, vol. 140(C).
    16. Aysan, Ahmet Faruk & Demir, Ender & Gozgor, Giray & Lau, Chi Keung Marco, 2019. "Effects of the geopolitical risks on Bitcoin returns and volatility," Research in International Business and Finance, Elsevier, vol. 47(C), pages 511-518.
    17. Diego Comin & Martí Mestieri, 2018. "If Technology Has Arrived Everywhere, Why Has Income Diverged?," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 137-178, July.
    18. Kouhizadeh, Mahtab & Saberi, Sara & Sarkis, Joseph, 2021. "Blockchain technology and the sustainable supply chain: Theoretically exploring adoption barriers," International Journal of Production Economics, Elsevier, vol. 231(C).
    19. Luo, Yadong, 2005. "An Organizational Perspective of Corruption1," Management and Organization Review, Cambridge University Press, vol. 1(1), pages 119-154, March.
    20. Schuetz, Sebastian & Venkatesh, Viswanath, 2020. "Blockchain, adoption, and financial inclusion in India: Research opportunities," International Journal of Information Management, Elsevier, vol. 52(C).
    21. Christine M. Chan & Takehiko Isobe & Shige Makino, 2008. "Which country matters? Institutional development and foreign affiliate performance," Strategic Management Journal, Wiley Blackwell, vol. 29(11), pages 1179-1205, November.
    22. Hui Li & Diejun Huang & Qiuzhuo Ma & Wene Qi & Hua Li, 2019. "Factors Influencing the Technology Adoption Behaviours of Litchi Farmers in China," Sustainability, MDPI, vol. 12(1), pages 1-13, December.
    23. Nir Kshetri, 2017. "Potential roles of blockchain in fighting poverty and reducing financial exclusion in the global south," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 20(4), pages 201-204, October.
    24. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    25. Gao, Yanyan & Zang, Leizhen & Roth, Antoine & Wang, Puqu, 2017. "Does democracy cause innovation? An empirical test of the popper hypothesis," Research Policy, Elsevier, vol. 46(7), pages 1272-1283.
    26. José De Gregorio, 2018. "Productivity in Emerging-Market Economies: Slowdown or Stagnation?," Working Paper Series WP18-12, Peterson Institute for International Economics.
    27. Raffaella Barone & Donato Masciandaro, 2019. "Cryptocurrency or usury? Crime and alternative money laundering techniques," European Journal of Law and Economics, Springer, vol. 47(2), pages 233-254, April.
    28. Sinha, Avik & Sengupta, Tuhin & Saha, Tanaya, 2020. "Technology policy and environmental quality at crossroads: Designing SDG policies for select Asia Pacific countries," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    29. W. Edward STEINMUELLER, 2001. "ICTs and the possibilities for leapfrogging by developing countries," International Labour Review, International Labour Organization, vol. 140(2), pages 193-210, June.
    30. Wang, Lu & Luo, Gong-li & Sari, Arif & Shao, Xue-Feng, 2020. "What nurtures fourth industrial revolution? An investigation of economic and social determinants of technological innovation in advanced economies," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    31. Boret, Ny & Gawande, Kishore & Kobb, Daniel P., 2021. "Can decentralization lower poverty? Cambodia’s Commune and Sangkat Fund," World Development, Elsevier, vol. 146(C).
    32. Schlecht, Laura & Schneider, Sabrina & Buchwald, Arne, 2021. "The prospective value creation potential of Blockchain in business models: A delphi study," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    33. Crittenden, Victoria L. & Crittenden, William F. & Ajjan, Haya, 2019. "Empowering women micro-entrepreneurs in emerging economies: The role of information communications technology," Journal of Business Research, Elsevier, vol. 98(C), pages 191-203.
    34. Niebel, Thomas, 2018. "ICT and economic growth – Comparing developing, emerging and developed countries," World Development, Elsevier, vol. 104(C), pages 197-211.
    35. Behnke, Kay & Janssen, M.F.W.H.A., 2020. "Boundary conditions for traceability in food supply chains using blockchain technology," International Journal of Information Management, Elsevier, vol. 52(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Youssef El-Khatib & Abdulnasser Hatemi-J, 2023. "On a regime switching illiquid high volatile prediction model for cryptocurrencies," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 51(2), pages 485-498, July.
    2. Gambarelli, Luca & Marchi, Gianluca & Muzzioli, Silvia, 2023. "Hedging effectiveness of cryptocurrencies in the European stock market," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 84(C).
    3. Srivastava, Richa & Singh, Deepak Kumar & Rana, Nripendra P., 2024. "Analysis of barriers to investment and mining in cryptocurrency for traditional and tech-savvy investors: A fuzzy approach," Technology in Society, Elsevier, vol. 77(C).
    4. Loh, Xiu-Ming & Lee, Voon-Hsien & Leong, Lai-Ying & Aw, Eugene Cheng-Xi & Cham, Tat-Huei & Tang, Yun-Chia & Hew, Jun-Jie, 2023. "Understanding consumers’ resistance to pay with cryptocurrency in the sharing economy: A hybrid SEM-fsQCA approach," Journal of Business Research, Elsevier, vol. 159(C).
    5. Arpaci, Ibrahim, 2023. "Predictors of financial sustainability for cryptocurrencies: An empirical study using a hybrid SEM-ANN approach," Technological Forecasting and Social Change, Elsevier, vol. 196(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Jian & Zhang, Xuanjian & Liu, Wei & Ji, Ming & Mishra, Arunodaya Raj, 2022. "Critical success factors of blockchain technology to implement the sustainable supply chain using an extended decision-making approach," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    2. Venkataiah Chittipaka & Satish Kumar & Uthayasankar Sivarajah & Jana Lay-Hwa Bowden & Manish Mohan Baral, 2023. "Blockchain Technology for Supply Chains operating in emerging markets: an empirical examination of technology-organization-environment (TOE) framework," Annals of Operations Research, Springer, vol. 327(1), pages 465-492, August.
    3. Ngozi Adeleye & Chiamaka Eboagu, 2019. "Evaluation of ICT development and economic growth in Africa," Netnomics, Springer, vol. 20(1), pages 31-53, April.
    4. AFAWUBO, Komivi & NOGLO, Yawo Agbényégan, 2022. "ICT and entrepreneurship: A comparative analysis of developing, emerging and developed countries," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    5. Mwananziche, Josephat & Myovella, Godwin & Karacuka, Mehmet & Haucap, Justus & Moshi, Goodiel, 2023. "Is digitalization a booster for economic growth in Africa? Short run and long run evidence from Tanzania," Telecommunications Policy, Elsevier, vol. 47(10).
    6. Njangang, Henri & Beleck, Alim & Tadadjeu, Sosson & Kamguia, Brice, 2022. "Do ICTs drive wealth inequality? Evidence from a dynamic panel analysis," Telecommunications Policy, Elsevier, vol. 46(2).
    7. Myovella, Godwin & Karacuka, Mehmet & Haucap, Justus, 2020. "Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies," Telecommunications Policy, Elsevier, vol. 44(2).
    8. William F. Maloney & Felipe Valencia Caicedo, 2014. "Engineers, Innovative Capacity and Development in the Americas," Documentos CEDE 11948, Universidad de los Andes, Facultad de Economía, CEDE.
    9. Vu, Khuong M & Asongu, Simplice, 2020. "Backwardness advantage and economic growth in the information age: A cross-country empirical study," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    10. Barbieri, Elisa & Di Tommaso, Marco R. & Pollio, Chiara & Rubini, Lauretta, 2020. "Getting the specialization right. Industrialization in Southern China in a sustainable development perspective," World Development, Elsevier, vol. 126(C).
    11. Nchofoung, Tii N. & Asongu, Simplice A., 2022. "ICT for sustainable development: Global comparative evidence of globalisation thresholds," Telecommunications Policy, Elsevier, vol. 46(5).
    12. Kumar, Shashank & Raut, Rakesh D. & Agrawal, Nishant & Cheikhrouhou, Naoufel & Sharma, Mahak & Daim, Tugrul, 2022. "Integrated blockchain and internet of things in the food supply chain: Adoption barriers," Technovation, Elsevier, vol. 118(C).
    13. Lin, Yongjia & Fu, Xiaoqing & Fu, Xiaolan, 2021. "Varieties in state capitalism and corporate innovation: Evidence from an emerging economy," Journal of Corporate Finance, Elsevier, vol. 67(C).
    14. Alireza Abdollahi & Faraz Sadeghvaziri & Abderahman Rejeb, 2023. "Exploring the role of blockchain technology in value creation: a multiple case study approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 427-451, February.
    15. Chen, R. & Chen, K. & Ou, Carol, 2023. "Facilitating interorganizational trust in strategic alliances by leveraging blockchain-based systems: Case studies of two eastern banks," Other publications TiSEM 85ecf99c-76f0-416e-9604-d, Tilburg University, School of Economics and Management.
    16. Odhiambo, Nicholas M., 2022. "Information technology, income inequality and economic growth in sub-Saharan African countries," Telecommunications Policy, Elsevier, vol. 46(6).
    17. Rico-Peña, Juan Jesús & Arguedas-Sanz, Raquel & López-Martin, Carmen, 2023. "Models used to characterise blockchain features. A systematic literature review and bibliometric analysis," Technovation, Elsevier, vol. 123(C).
    18. Soumyadeb Chowdhury & Oscar Rodriguez-Espindola & Prasanta Dey & Pawan Budhwar, 2023. "Blockchain technology adoption for managing risks in operations and supply chain management: evidence from the UK," Annals of Operations Research, Springer, vol. 327(1), pages 539-574, August.
    19. William F. Maloney & Felipe Valencia Caicedo, 2017. "Engineering Growth: Innovative Capacity and Development in the Americas," CESifo Working Paper Series 6339, CESifo.
    20. Awad, Atif & Albaity, Mohamed, 2022. "ICT and economic growth in Sub-Saharan Africa: Transmission channels and effects," Telecommunications Policy, Elsevier, vol. 46(8).

    More about this item

    Keywords

    cryptocurrencies; blockchain; technology adoption; national development; Technology adoption; Cryptocurrencies; Blockchain; National development;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:115237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.