The role of insurance growth in economic growth: Fresh evidence from a panel of OECD countries
Journal article
Authors | Apergis, Nicholas and Poufinas, Thomas |
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Abstract | Insurance is one of the key activities in a globalised financial and economic environment. Through its benefits, it offers income, life and property protection to the insured and their keens, as well as income accumulation that can be used at retirement to help preserve the desired lifestyle or living standards. Motivated by this end of insurance, the goal of this paper is to study the contribution of insurance growth to economic growth, by employing the benefit side of the insurance activity, next to the acquisition side that has already been considered. More precisely, the findings provide evidence that gross claims payments and gross operating expenses are significantly and positively related to economic growth. At the same time, the results confirm the findings of the existing literature that gross premia and insurance penetration are also significantly and positively related to economic growth. The outcomes hold true for total, life and non-life insurance, both during the pre- and post- 2008-crisis periods, even though less strong after the crisis. Furthermore, the positive and statistically significant impact of gross capital formation, government expenditure, secondary schooling, FDI inflows, trade openness and financial development is validated, in line with certain theoretical expectations. |
Keywords | Research Subject Categories::SOCIAL SCIENCES; Insurance growth, Economic growth, Premium Retention, Macroeconomic variables |
Year | 2020 |
Journal | The North American journal of Economics and Finance |
Publisher | Elsevier |
ISSN | 1062-9408 |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.najef.2020.101217 |
Web address (URL) | http://hdl.handle.net/10545/624805 |
http://creativecommons.org/publicdomain/zero/1.0/ | |
hdl:10545/624805 | |
Publication dates | 11 May 2020 |
Publication process dates | |
Deposited | 22 May 2020, 13:23 |
Accepted | 05 May 2020 |
Rights | CC0 1.0 Universal |
Contributors | University of Derby and Democritus University of Thrace |
File | |
File | File Access Level Open |
File | File Access Level Open |
https://repository.derby.ac.uk/item/93qxq/the-role-of-insurance-growth-in-economic-growth-fresh-evidence-from-a-panel-of-oecd-countries
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