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Insurance Market and Economic Growth in an Information-Driven Economy: Evidence from a Panel of High- and Middle-Income Countries?

Author

Listed:
  • Rudra P. Pradhan

    (Indian Institute of Technology Kharagpur)

  • Sahar Bahmani

    (University of Wisconsin-Parkside)

  • Rebecca Abraham

    (Nova Southeastern University)

  • John H. Hall

    (University of Pretoria)

Abstract

The main focus of this investigation is potential Granger causal relationships between the insurance market, Information and Communications Technology (ICT) infrastructure, and economic growth in a sample of high- and middle-income countries (H&MICs) from 1980 to 2019. We deployed a panel vector autoregressive model, and found that in the long run, the insurance market and ICT infrastructure Granger-cause economic growth. In the short run, we found robust causal links, but they vary in nature. The findings suggest that H&MICs should base ICT infrastructure planning on strategies that endorse economic growth and policies that may also promote insurance market development. Graphical Abstract

Suggested Citation

  • Rudra P. Pradhan & Sahar Bahmani & Rebecca Abraham & John H. Hall, 2023. "Insurance Market and Economic Growth in an Information-Driven Economy: Evidence from a Panel of High- and Middle-Income Countries?," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 30(3), pages 587-620, September.
    • Handle: RePEc:kap:apfinm:v:30:y:2023:i:3:d:10.1007_s10690-022-09390-8
    DOI: 10.1007/s10690-022-09390-8
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    More about this item

    Keywords

    ICT infrastructure; Insurance market; Economic growth; H&MICs;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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