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Determinants of non-life insurance expenditure in developed and developing countries: an empirical investigation


  • Tam Trinh
  • Xuan Nguyen
  • Pasquale Sgro


The determinants of non-life insurance expenditure in a panel data set covering 36 developed countries and 31 developing countries for the period 2000–2011 are analysed. Results of our instrumental variable analysis indicate that economic freedom, income, bank development, urbanization, culture and law systems are the key drivers of the non-life insurance expenditure across countries. However, their impacts differ significantly between the groups of developed and developing countries, suggesting that the heterogeneity among countries in terms of the level of development plays an important role. The global financial crisis is also found to influence the direction of those effects, especially in developed countries. The article yields useful policy and economic implications for governments and multinational non-life insurance companies with regard to the development of the non-life insurance sector, an important engine for economic growth and prosperity.

Suggested Citation

  • Tam Trinh & Xuan Nguyen & Pasquale Sgro, 2016. "Determinants of non-life insurance expenditure in developed and developing countries: an empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 48(58), pages 5639-5653, December.
  • Handle: RePEc:taf:applec:v:48:y:2016:i:58:p:5639-5653
    DOI: 10.1080/00036846.2016.1181834

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    References listed on IDEAS

    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, May.
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