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Re-investigating the insurance-growth nexus using common factors

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  • Rodriguez Gonzalez, Miguel
  • Wegener, Christoph
  • Basse, Tobias

Abstract

This study re-investigates the linkage between insurance market activity and economic activity by using panel cointegration techniques. The methodology used here accounts for the presence of cross-sectional dependence. Considering nine panels formed from the data of 90 countries, we find evidence in favor of panel cointegration among real insurance market activity per capita and real GDP per capita.

Suggested Citation

  • Rodriguez Gonzalez, Miguel & Wegener, Christoph & Basse, Tobias, 2022. "Re-investigating the insurance-growth nexus using common factors," Finance Research Letters, Elsevier, vol. 46(PA).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pa:s1544612321002907
    DOI: 10.1016/j.frl.2021.102231
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    More about this item

    Keywords

    Insurance-growth nexus; Panel cointegration; Cross-sectional dependence;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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