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Analysis Of The Impact Of Insurance Sector On Total Investments In Romania

Author

Listed:
  • COSTACHE BIANCA

    (ACADEMY OF ECONOMIC STUDIES OF BUCHAREST)

Abstract

This paper is mainly focused on a key topic of economic literature, respectively the link between insurance instruments and total investments at macroeconomic level. Thus, the study includes the analysis and evaluation of the effects of insurance instruments on the real growth rate of investments in the economic context of Romania. The analysis was made by approaching different models and econometric tests, respectively by using the auto-regressive vector/auto-regressive vecto with correction, which surprised the effect of the three selected indicators: gross written premiums related to life/general and total insurance, on the real growth rate of the total amount of investments. The research hypothesis for starting the analysis is that the insurance instruments have a significant economic potential in the Romanian economy, with a high impact on the investment environment, depending on the instrument used in the promotion process of the entrepreneurship. Following the analysis of the econometric model’ results and tests, the initial formulated hypothesis was validated by generally obtaining a positive effect given by the insurance instruments on investment real growth. Also, the econometric cointegration and causality tests supported the results obtained from the run of the autoregressive vector models. The results of the study are important as it forms a concrete basis for developing recommendations for the use of these instruments in stimulating investments as well as for the economic potential that this sector has on the financial market in Romania.

Suggested Citation

  • Costache Bianca, 2018. "Analysis Of The Impact Of Insurance Sector On Total Investments In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 50-58, October.
    • Handle: RePEc:cbu:jrnlec:y:2018:v:5:p:50-58
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    References listed on IDEAS

    as
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    2. Mr. Udaibir S Das & Richard Podpiera & Nigel Davies, 2003. "Insurance and Issues in Financial Soundness," IMF Working Papers 2003/138, International Monetary Fund.
    3. Peter Haiss & Kjell Sümegi, 2008. "The relationship between insurance and economic growth in Europe: a theoretical and empirical analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(4), pages 405-431, September.
    4. Sajid Mohy Ul Din & Arpah Abu-Bakar & Angappan Regupathi, 2017. "Does insurance promote economic growth: A comparative study of developed and emerging/developing economies," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1390029-139, January.
    Full references (including those not matched with items on IDEAS)

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