Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries
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 in...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/12/7269816/insurance-market-activity-promote-economic-growth-country-study-industrial-developing-countries http://hdl.handle.net/10986/9257 |
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okr-10986-92572021-04-23T14:02:42Z Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries Arena, Marco BALANCE SHEETS BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKS BORROWING BUDGET SURPLUS CAPITALIZATION CONTRACTUAL SAVING CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CORPORATE GOVERNANCE COST OF CAPITAL CREDIT RISK DEFLATION DEFLATORS DEVELOPMENT BANKS ECONOMETRICS ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EMPLOYMENT ENTREPRENEURSHIP EXPORTS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEMS GDP GDP PER CAPITA GROWTH RATE HEALTH INSURANCE HUMAN CAPITAL INCOME INFLATION INFLATION RATE INSURANCE INSURANCE MARKETS INSURANCE PREMIUMS INSURERS LAWS LIBERALIZATION LIFE INSURANCE COMPANIES LIFE INSURANCE PREMIUMS LIQUIDITY M2 NON-LIFE INSURANCE POSITIVE EFFECTS PREMIUMS PRODUCTION FUNCTION PROPERTY INSURANCE PUBLIC ENTERPRISES RATES REAL GDP REGRESSION ANALYSIS REINSURANCE RISK MANAGEMENT RISK TRANSFER SAVINGS SECURITIES SECURITIES MARKETS STOCK MARKETS STOCKS SUBSTITUTION EFFECT TRANSPORT TRANSPORT INSURANCE TRINIDAD AND TOBAGO 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. 2012-06-26T16:09:43Z 2012-06-26T16:09:43Z 2006-12 http://documents.worldbank.org/curated/en/2006/12/7269816/insurance-market-activity-promote-economic-growth-country-study-industrial-developing-countries http://hdl.handle.net/10986/9257 English en_US Policy Research Working Paper; No. 4098 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
BALANCE SHEETS BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKS BORROWING BUDGET SURPLUS CAPITALIZATION CONTRACTUAL SAVING CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CORPORATE GOVERNANCE COST OF CAPITAL CREDIT RISK DEFLATION DEFLATORS DEVELOPMENT BANKS ECONOMETRICS ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EMPLOYMENT ENTREPRENEURSHIP EXPORTS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEMS GDP GDP PER CAPITA GROWTH RATE HEALTH INSURANCE HUMAN CAPITAL INCOME INFLATION INFLATION RATE INSURANCE INSURANCE MARKETS INSURANCE PREMIUMS INSURERS LAWS LIBERALIZATION LIFE INSURANCE COMPANIES LIFE INSURANCE PREMIUMS LIQUIDITY M2 NON-LIFE INSURANCE POSITIVE EFFECTS PREMIUMS PRODUCTION FUNCTION PROPERTY INSURANCE PUBLIC ENTERPRISES RATES REAL GDP REGRESSION ANALYSIS REINSURANCE RISK MANAGEMENT RISK TRANSFER SAVINGS SECURITIES SECURITIES MARKETS STOCK MARKETS STOCKS SUBSTITUTION EFFECT TRANSPORT TRANSPORT INSURANCE TRINIDAD AND TOBAGO |
| spellingShingle |
BALANCE SHEETS BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKS BORROWING BUDGET SURPLUS CAPITALIZATION CONTRACTUAL SAVING CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CORPORATE GOVERNANCE COST OF CAPITAL CREDIT RISK DEFLATION DEFLATORS DEVELOPMENT BANKS ECONOMETRICS ECONOMIC GROWTH ECONOMICS EMERGING MARKETS EMPLOYMENT ENTREPRENEURSHIP EXPORTS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEMS GDP GDP PER CAPITA GROWTH RATE HEALTH INSURANCE HUMAN CAPITAL INCOME INFLATION INFLATION RATE INSURANCE INSURANCE MARKETS INSURANCE PREMIUMS INSURERS LAWS LIBERALIZATION LIFE INSURANCE COMPANIES LIFE INSURANCE PREMIUMS LIQUIDITY M2 NON-LIFE INSURANCE POSITIVE EFFECTS PREMIUMS PRODUCTION FUNCTION PROPERTY INSURANCE PUBLIC ENTERPRISES RATES REAL GDP REGRESSION ANALYSIS REINSURANCE RISK MANAGEMENT RISK TRANSFER SAVINGS SECURITIES SECURITIES MARKETS STOCK MARKETS STOCKS SUBSTITUTION EFFECT TRANSPORT TRANSPORT INSURANCE TRINIDAD AND TOBAGO Arena, Marco Does Insurance Market Activity Promote Economic Growth? A Cross-Country Study for Industrialized and Developing Countries |
| relation |
Policy Research Working Paper; No. 4098 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| 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 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/12/7269816/insurance-market-activity-promote-economic-growth-country-study-industrial-developing-countries http://hdl.handle.net/10986/9257 |
| _version_ |
1764406776896159744 |