Title: Do cryptocurrency and commodities markets affect stock market performance in South Asia? An empirical investigation during the COVID-19 pandemic

Authors: Aamir Aijaz Syed; Muhammad Abdul Kamal

Addresses: Institute of Management Commerce and Economics, Shri Ramswaroop Memorial University, Lucknow, India ' Department of Economics, Abdul Wali Khan University, Pakistan

Abstract: The emergence of cryptocurrencies, as well as global commodity price volatility, have affected the global stock market performance. The recent pandemic outbreak has exacerbated the situation. Against this backdrop, we sought to explore the relationship between cryptocurrencies, commodity, and stock market performances in South Asia, by segregating the data into two timelines. The results of GMM and fixed effects models reveal that cryptocurrencies and gold prices have a significant and negative impact on stock market performance. In addition, empirical findings also highlight that during COVID-19, the influence of cryptocurrencies and gold prices on the stock market was much greater (1.5% cryptocurrencies and 1.7% gold prices) compared to the pre-COVID-19 timeline (1.3% cryptocurrencies and 1.1% gold prices). The study also concludes that only Bitcoin and Ethereum have a significant impact on the stock market performance of South Asia. The findings offer several policy implications.

Keywords: cryptocurrency; stock market; oil prices; gold prices; IV-GMM; South Asia.

DOI: 10.1504/IJEBR.2024.138870

International Journal of Economics and Business Research, 2024 Vol.27 No.4, pp.673 - 692

Received: 07 Sep 2021
Accepted: 10 Nov 2021
Published online: 03 Jun 2024 *

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