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Hubungan Asuransi dan Pertumbuhan Ekonomi di Indonesia
[Relationship between Insurance and Economic Growth in Indonesia]

Author

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  • Nizar, Muhammad Afdi

Abstract

This study aims to examine the relationship between insurance and economic growth in Indonesia in the period 1984 - 2014. Using time series data and the Vector Autoregressive (VAR) model, this study analyzes the effect of insurance variables on economic growth and the effect of economic growth on insurance variables. The analysis shows that: (i) life insurance premiums have a positive effect on economic growth for 7 periods (years); (ii) non-life insurance premiums have a positive effect on economic growth for 4 years; (iii) the number of insurance policies negatively influences economic growth for 4 years. On the other hand, the results of the analysis show that economic growth: (i) has a positive effect on the growth of life insurance premiums for a year; (ii) a positive effect on the growth of non-life insurance premiums for a year; and (iii) has a negative effect on the growth of the number of insurance policies for 2 years. Therefore, it needs various efforts that can transform the habits of the people who were originally still low in interest (literacy) to invest in insurance activities and products into an insurance-literate society.

Suggested Citation

  • Nizar, Muhammad Afdi, 2016. "Hubungan Asuransi dan Pertumbuhan Ekonomi di Indonesia [Relationship between Insurance and Economic Growth in Indonesia]," MPRA Paper 97928, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:97928
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    References listed on IDEAS

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    Cited by:

    1. Nizar, Muhammad Afdi, 2018. "Pergulatan Asuransi Syariah di Indonesia [The Struggling of Sharia Insurance in Indonesia]," MPRA Paper 97955, University Library of Munich, Germany.

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    More about this item

    Keywords

    life insurance; non-life insurance; density; intermediation; penetration; economic growth; insurance premium; Vector Autoregressive;
    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
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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