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Insurance Development and Economic Growth*

Author

Listed:
  • Liyan Han

    (School of Economics & Management, Beihang University, Beijing, China)

  • Donghui Li

    () (School of Banking and Finance, The University of New South Wales, Sydney, Australia.)

  • Fariborz Moshirian

    () (School of Banking and Finance, The University of New South Wales, Sydney, Australia.)

  • Yanhui Tian

    (School of Economics & Management, Beihang University, Beijing, China)

Abstract

This paper investigates the relationship between insurance development and economic growth by employing GMM models on a dynamic panel data set of 77 economies for the period 1994–2005. Insurance density is used to measure the development of insurance. Controlled by a simple conditioning information set and a policy information set, we can draw a conclusion that insurance development is positively correlated with economic growth. The sample is then divided into developed and developing economies. For the developing economies, the overall insurance development, life insurance and non-life insurance development play a much more important role than they do for the developed economies.

Suggested Citation

  • Liyan Han & Donghui Li & Fariborz Moshirian & Yanhui Tian, 2010. "Insurance Development and Economic Growth*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 35(2), pages 183-199, April.
  • Handle: RePEc:pal:gpprii:v:35:y:2010:i:2:p:183-199
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    Citations

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    Cited by:

    1. repec:eee:quaeco:v:66:y:2017:i:c:p:136-148 is not listed on IDEAS
    2. Wanat, Stanisław & Papież, Monika & Śmiech, Sławomir, 2016. "Insurance Market Development and Economic Growth in Transition Countries: Some new evidence based on bootstrap panel Granger causality test," MPRA Paper 69051, University Library of Munich, Germany.
    3. Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R., 2015. "Insurance development and the finance-growth nexus: Evidence from 34 OECD countries," Journal of Multinational Financial Management, Elsevier, vol. 31(C), pages 1-22.
    4. Alex Coad & Julian Frankish & Paul Nightingale & Richard Roberts, 2014. "Business experience and start-up size: Buying more lottery tickets next time around?," Small Business Economics, Springer, vol. 43(3), pages 529-547, October.
    5. Bruns, Stephan B. & Gross, Christian, 2013. "What if energy time series are not independent? Implications for energy-GDP causality analysis," Energy Economics, Elsevier, vol. 40(C), pages 753-759.
    6. Hongbing HU & Meng SU & Wenhua LEE, 2013. "Insurance Activity and Economic Growth Nexus in 31 Regions of China: Bootstrap Panel Causality Test," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 182-198, October.
    7. Stephan B. Bruns, Christian Gross and David I. Stern, 2014. "Is There Really Granger Causality Between Energy Use and Output?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    8. Paul Mosley, 2012. "The politics of what works for the poor in public expenditure and taxation: a review," Global Development Institute Working Paper Series esid-011-12, GDI, The University of Manchester.
    9. repec:kap:enreec:v:69:y:2018:i:1:d:10.1007_s10640-016-0071-x is not listed on IDEAS
    10. repec:spr:empeco:v:52:y:2017:i:4:d:10.1007_s00181-016-1111-7 is not listed on IDEAS
    11. Liu, Guanchun & He, Lei & Yue, Yiding & Wang, Jiying, 2014. "The linkage between insurance activity and banking credit: Some evidence from dynamic analysis," The North American Journal of Economics and Finance, Elsevier, vol. 29(C), pages 239-265.
    12. Pradhan, Rudra P. & Arvin, B. Mak & Norman, Neville R. & Nair, Mahendhiran & Hall, John H., 2016. "Insurance penetration and economic growth nexus: Cross-country evidence from ASEAN," Research in International Business and Finance, Elsevier, vol. 36(C), pages 447-458.
    13. Mahri Hamydova, 2014. "The effect of insurance on economic growth – the analysis of OECD countries," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 36.
    14. Lee, Chien-Chiang & Chiu, Yi-Bin & Chang, Chi-Hung, 2013. "Insurance demand and country risks: A nonlinear panel data analysis," Journal of International Money and Finance, Elsevier, vol. 36(C), pages 68-85.
    15. Concha, Ángela & Taborda, Rodrigo, 2014. "Insurance use and economic growth in Latin America. Some panel data evidence," REVISTA LECTURAS DE ECONOMÍA, UNIVERSIDAD DE ANTIOQUIA - CIE, issue 81, pages 31-55, February.
    16. Lee, Chien-Chiang & Lee, Chi-Chuan & Chiu, Yi-Bin, 2013. "The link between life insurance activities and economic growth: Some new evidence," Journal of International Money and Finance, Elsevier, vol. 32(C), pages 405-427.
    17. Lee, Chien-Chiang & Chang, Chi-Hung & Arouri, Mohamed & Lee, Chi-Chuan, 2016. "Economic growth and insurance development: The role of institutional environments," Economic Modelling, Elsevier, vol. 59(C), pages 361-369.
    18. repec:jed:journl:v:42:y:2017:i:4:p:23-57 is not listed on IDEAS
    19. Chakravarty, Sugato & Pylypiv, Mariya I., 2015. "The Role of Subsidization and Organizational Status on Microfinance Borrower Repayment Rates," World Development, Elsevier, vol. 66(C), pages 737-748.
    20. repec:taf:oaefxx:v:4:y:2016:i:1:p:1150390 is not listed on IDEAS
    21. Eyup Dogan, 2016. "The Relationship between Economic Growth, Energy Consumption and Trade," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 4(1), pages 70-80, March.
    22. Poyesh Bahadori Jahromi & Hojatallah Goudarzi, 2014. "The Study of Co-Integration and Casual Relationship Between Macroeconomic Variables and Insurance Penetration Ratio," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(7), pages 853-863, July.
    23. repec:eee:revfin:v:33:y:2017:i:c:p:12-28 is not listed on IDEAS
    24. Lee, Chien-Chiang & Huang, Wei-Ling & Yin, Chun-Hao, 2013. "The dynamic interactions among the stock, bond and insurance markets," The North American Journal of Economics and Finance, Elsevier, vol. 26(C), pages 28-52.

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