Arena, Marco
Does Insurance Market Activity Promote Economic Growth ? Country Study for Industrial and Developing Countries / Arena, Marco [electronic resource] : Arena, Marco - Washington, D.C., The World Bank, 2006 - 1 online resource (22 p.) - Policy research working papers. World Bank e-Library. .
Insurance market activity, both as a financial intermediary and a provider of risk transfer and indemnification, may contribute to economic growth by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the past decade, there has been faster growth in insurance market activity, particularly in emerging markets given the process of liberalization and financial integration, which raises questions about its impact on economic growth. The author tests whether there is a causal relationship between insurance market activity (life and nonlife insurance) and economic growth. Using the generalized method of moments for dynamic models of panel data for 56 countries and for the 1976-2004 period, he finds robust evidence of a causal relationship between insurance market activity and economic growth. Both life and nonlife insurance have a positive and significant causal effect on economic growth. High-income countries drive the results in the case of life insurance. On the other hand, both high-income and developing countries drive the results in the case of nonlife insurance.
10.1596/1813-9450-4098
Bank Policy
Banking Sector
Banks and Banking Reform
Bond
Debt Markets
Developing Countries
Economic Theory and Research
Emerging Markets
Exchange
Finance and Financial Sector Development
Financial Intermediation
Financial Literacy
Financial Systems
Insurance
Insurance and Risk Mitigation
Insurance Law
Insurance Market
Insurance Markets
Insurance Premiums
Investment
Investment Decisions
Law and Development
Life Insurance
Life Insurance Premiums
Macroeconomics and Economic Growth
Potential Investments
Private Sector Development
Productive Investments
Stock
Stock Market
Stock Market Development
Does Insurance Market Activity Promote Economic Growth ? Country Study for Industrial and Developing Countries / Arena, Marco [electronic resource] : Arena, Marco - Washington, D.C., The World Bank, 2006 - 1 online resource (22 p.) - Policy research working papers. World Bank e-Library. .
Insurance market activity, both as a financial intermediary and a provider of risk transfer and indemnification, may contribute to economic growth by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the past decade, there has been faster growth in insurance market activity, particularly in emerging markets given the process of liberalization and financial integration, which raises questions about its impact on economic growth. The author tests whether there is a causal relationship between insurance market activity (life and nonlife insurance) and economic growth. Using the generalized method of moments for dynamic models of panel data for 56 countries and for the 1976-2004 period, he finds robust evidence of a causal relationship between insurance market activity and economic growth. Both life and nonlife insurance have a positive and significant causal effect on economic growth. High-income countries drive the results in the case of life insurance. On the other hand, both high-income and developing countries drive the results in the case of nonlife insurance.
10.1596/1813-9450-4098
Bank Policy
Banking Sector
Banks and Banking Reform
Bond
Debt Markets
Developing Countries
Economic Theory and Research
Emerging Markets
Exchange
Finance and Financial Sector Development
Financial Intermediation
Financial Literacy
Financial Systems
Insurance
Insurance and Risk Mitigation
Insurance Law
Insurance Market
Insurance Markets
Insurance Premiums
Investment
Investment Decisions
Law and Development
Life Insurance
Life Insurance Premiums
Macroeconomics and Economic Growth
Potential Investments
Private Sector Development
Productive Investments
Stock
Stock Market
Stock Market Development