Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries

Insurance market activity may contribute to economic growth, both as financial intermediary and provider of risk transfer and indemnification, by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in insura...

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Main Author:	Arena, Marco
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Macroeconomics: Consumption Saving Wealth E210 Financial Markets and the Macroeconomy E440 Insurance Insurance Companies G220 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470
Online Access:	http://hdl.handle.net/10986/4662

id	okr-10986-4662
recordtype	oai_dc
spelling	okr-10986-46622021-04-23T14:02:19Z Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries Arena, Marco Macroeconomics: Consumption Saving Wealth E210 Financial Markets and the Macroeconomy E440 Insurance Insurance Companies G220 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Insurance market activity may contribute to economic growth, both as financial intermediary and provider of risk transfer and indemnification, by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in insurance market activity, particularly in emerging markets, given the process of financial liberalization and integration, which raises questions about the overall impact on economic growth. This article tests whether there is a causal relationship between insurance market activity (life and nonlife insurance) and economic growth. Using the generalized method of moments (GMM) for dynamic models of panel data for 55 countries between 1976 and 2004, I find robust evidence for this relationship. Both life and nonlife insurance have a positive and significant causal effect on economic growth. For life insurance, high-income countries drive the results, and for nonlife insurance, both high-income and developing countries drive the results. 2012-03-30T07:29:06Z 2012-03-30T07:29:06Z 2008 Journal Article Journal of Risk and Insurance 00224367 http://hdl.handle.net/10986/4662 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Macroeconomics: Consumption Saving Wealth E210 Financial Markets and the Macroeconomy E440 Insurance Insurance Companies G220 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470
spellingShingle	Macroeconomics: Consumption Saving Wealth E210 Financial Markets and the Macroeconomy E440 Insurance Insurance Companies G220 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Arena, Marco Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Insurance market activity may contribute to economic growth, both as financial intermediary and provider of risk transfer and indemnification, by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in insurance market activity, particularly in emerging markets, given the process of financial liberalization and integration, which raises questions about the overall impact on economic growth. This article tests whether there is a causal relationship between insurance market activity (life and nonlife insurance) and economic growth. Using the generalized method of moments (GMM) for dynamic models of panel data for 55 countries between 1976 and 2004, I find robust evidence for this relationship. Both life and nonlife insurance have a positive and significant causal effect on economic growth. For life insurance, high-income countries drive the results, and for nonlife insurance, both high-income and developing countries drive the results.
format	Journal Article
author	Arena, Marco
author_facet	Arena, Marco
author_sort	Arena, Marco
title	Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries
title_short	Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries
title_full	Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries
title_fullStr	Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries
title_full_unstemmed	Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries
title_sort	does insurance market activity promote economic growth? a cross-country study for industrialized and developing countries
publishDate	2012
url	http://hdl.handle.net/10986/4662
_version_	1764392302161166336

Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries

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