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Reassessing the Nexus between Insurance Activities and Economic Growth in China Through Quantile Approaches

Author

Listed:
  • Guochen PAN

    (Business School, Wuchang University of Technology, Wuhan, China. Corresponding author.)

  • Tsangyao CHANG

    (Department of Finance, Feng Chia University, Taichung, TAIWAN.)

  • Mei-Chih WANG

    (Department of Finance, Providence University, Taichung, TAIWAN.)

  • Mengqi LIU

    (Economics and Management School, Wuhan University, CHINA.)

  • Iuliana Carmen BĂRBĂCIORU

    (Department of Energy, Environment and Agrotourism ”Constantin Brâncusi” University of Târgu. Jiu.)

Abstract

This study reexamines the relationship between insurance activities and economic growth in China, employing both the Quantile approach and the Quantile-on-Quantile approach, which have rarely been used in the previous studies. It is identified that economic growth generally contains causal impacts on life/non-life insurance activities, and a feedback causal relation is identified at 0.1~0.5 quantiles. Results from Quantile_on_Quantile approach give more details about the causal relation of the nexus and find the relation varying at different quantiles. Furthermore, interest rate is found to affect the causal relations significantly. Our empirical results contain important implications for insurance policy making and insurance firm management in China.

Suggested Citation

  • Guochen PAN & Tsangyao CHANG & Mei-Chih WANG & Mengqi LIU & Iuliana Carmen BĂRBĂCIORU, 2023. "Reassessing the Nexus between Insurance Activities and Economic Growth in China Through Quantile Approaches," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 57-71, December.
    • Handle: RePEc:rjr:romjef:v::y:2023:i:4:p:57-71
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    More about this item

    Keywords

    Insurance activities; economic growth; quantile approach; Quantile_on_Quantile approach; Granger causality;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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