Features and Economics of Electronic Crowdfunding in the Face of Global Challenges
DOI:
https://doi.org/10.57125/FEL.2022.12.25.02Keywords:
crowdfunding, macroeconomic stability, digital infrastructure, fixed effect, panel dataAbstract
This study analyzes the dynamics of electronic crowdfunding in connection with global challenges by operating across ten countries from high- to low-income level during a time-span between 2008–2021 using panel dataset. In the conditions of increasing volatility and geopolitical conflicts, or economic crises caused by pandemics there appears a considerable research problem regarding the efficiency of crowdfunding platforms with an emphasis on regions experiencing shocks like Ukraine. The purpose of the study is to analyze these platforms from an economic perspective and provide a deeper understanding on how success factors shape crowdfunding outcomes, focusing especially global crises. The overall methodology is based on a transition from unit root tests to Pedroni cointegration test, with the ultimate aim of adopting fixed effects models in order uncover evidence for relations between crowdfunding success rates and various predictors related to macroeconomic stability, digital infrastructure, regulatory environment, trust & transparency as well impact made by global crises. The analysis shows that macroeconomic stability, digital infrastructure and favorable regulatory environment have positive correlation with higher rates of crowdfunding success while global crises have inverse relationship. Results indicate that a better digital infrastructure and the more macroeconomic stability in Europe leads to success of Crowdfunding In addition to this, responsive policy frameworks like those which adjust according to global economic swings or crises can hedge crowdfunding platforms against external shocks.
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