Insurance market development and economic growth in transition countries: some new evidence based on the bootstrap panel granger causality test

Wanat, Stanisław; Papież, Monika; Śmiech, Sławomir

doi:10.15611/aoe.2019.1.09

Cited by 5 publications

(5 citation statements)

References 20 publications

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“…The results of Chang et al (2013), Ward and Zurbruegg (2000), Demirci and Zeren (2017), Wanat et al (2016) and Peleckienė et al (2019) confi rm diff erent directions of causality between insurance activities and economic growth. The diff erences in the results can be attributed to the applied methodology, selected indicators of insurance market development and economic growth and certain characteristics of the analysed countries.…”

Section: Discussionmentioning

confidence: 80%

“…Our research was based on the relations between insurance market development and economic growth developed by Hugh (1966). Wanat et al (2016) also used his assumption.…”

Section: Methodology and Datamentioning

confidence: 99%

“…Using the bootstrap panel causality approach, Wanat et al (2016) also noticed the relationship between insurance and economic growth varying from country to country in the case of 10 transition countries in the EU in the period 1993-2013.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The fi rst part provides an overview of the results of scientists who have observed the insurance market of the selected countries in order to examine to what extent insurance contributed to economic growth (Arena, 2008;Han et al, 2010;Wanat et al, 2016;Lee, 2011;Lee et al, 2013;Demirci and Zeren, 2017;Apergis and Poufi nas, 2020;Haiss and Sümegi, 2008;Peleckienė et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Relationship Between Insurance Market and Economic Growth in the European Union

Mitrašević¹,

Pjanić²,

Burić³

2022

Politicka ekonomie

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This paper examines the relationship between insurance market development and economic growth in EU member states in the period 1998-2018. Our results indicate that there is no causality between premium per capita and GDP per capita growth in the case of 11 out of the 23 analysed countries, including four countries classified as emerging markets. However, in the case of panel data covering all the countries, we determined a two-way causality between insurance market development and economic growth. In the short run, premium per capita has a positive and significant impact on the economic growth as proven in the data panel and in the case of individual countries, except in the case of Ireland and Luxembourg, where the applied model shows only error-correction coefficient values. Besides, our results indicate that premium per capita has a significant positive effect on economic growth in the long run in the case of Belgium, Cyprus, Bulgaria, Romania and Slovenia, i.e., insurance premium is a key determinant of long-term economic growth. The results show a statistically significant long-term positive relationship between premium per capita and GDP growth per capita in the case of a panel analysis of all the observed countries and countries classified as emerging markets. On the other hand, the panel data analysis of the countries classified in the category of developed markets showed a long-term positive relationship, but not a statistically significant one. Since that results indicate that the insurance market development could contribute to ensuring longterm economic stability and growth of observed countries, special attention needs to be paid to the strategy of insurance market development in a changing business environment.

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Section: Discussionmentioning

confidence: 80%

“…Our research was based on the relations between insurance market development and economic growth developed by Hugh (1966). Wanat et al (2016) also used his assumption.…”

Section: Methodology and Datamentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Relationship Between Insurance Market and Economic Growth in the European Union

Mitrašević¹,

Pjanić²,

Burić³

2022

Politicka ekonomie

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“…Determining the rules that govern economic life is at the core of interest of many economists, as shown in the studies by Richard R. Nelson (2016), Uwe Cantner (2016), Oded Stark, Fryderyk Falniowski, and Marcin Jakubek (2017), Beata Ciałowicz and Andrzej Malawski (2017), Claudio Roberto Amitrano and Lucas Vasconcelos (2019), and Stanisław Wanat, Monika Papież, and Sławomir Śmiech (2019). In these works, special attention is given to the roots, structures, and results of the economic processes presented.…”

Section: Introductionmentioning

confidence: 99%

The role of destructive mechanisms within economic evolution

Lipieta

2023

Panoeconomicus

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This research is inspired by Joseph Schumpeter?s understanding of economic evolution. In his view, innovations promote economic development, whereas imitations promote the diffusion of innovations, leading the economy through a process that he defines as "creative destruction." A host of economists tend to agree on the importance and consequences of innovations and imitations within economic processes; however, opinions regarding creative destruction tend to differ. One view purports that creative destruction serves as a main variable, pushing the capitalist economic system toward equilibrium through imitation processes. A contrary view suggests that an equilibrium state actually promotes economic growth. Within this context, our research aims to model some mechanisms that may appear within economic evolution. Hurwicz?s concept of economic mechanisms is introduced in a modified Arrow?Debreu model, as a way of examining Schumpeter?s ideas on the role of creative destruction in economic processes that does not decrease the positions of agents. In relation to this, the present work suggests that it is indeed possible to design a mechanism that would transform the economic system under consideration toward a state of equilibrium, without making the positions of any agents worse off.

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The Effect of the 2004 EU Enlargement on the Development and Similarity of the Insurance Sectors in the EU

Denkowska¹,

Wanat²,

Vieito³

2023

European Review

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The enlargement of the European Union to new countries in 2004 introduced mechanisms to support the development of various social and economic areas, while also aiming to level the differences between the member states. The primary purpose of this study is to analyse the development and similarities of the insurance markets in the old and new member states of the EU after the enlargement in 2004. We examine the insurance sector of both groups of countries, i.e., those that were members before 2004 and those that joined in 2004, using Hellwig’s development measure, which takes into account several characteristics. Additionally, we analyse the similarity of these countries using three statistical methods of unsupervised classification: Ward’s method, the k-means method, and the Partitioning Among Medoids. Our results indicate that there was a significant variation in the insurance characteristics of these compared groups of EU members after 2004. In general, the insurance markets of the old and new EU countries developed differently. Since the enlargement in 2004, the insurance markets of the old and new EU countries have not yet aligned.

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Insurance market development and economic growth in transition countries: some new evidence based on the bootstrap panel granger causality test

Cited by 5 publications

References 20 publications

Relationship Between Insurance Market and Economic Growth in the European Union

Relationship Between Insurance Market and Economic Growth in the European Union

The role of destructive mechanisms within economic evolution

The Effect of the 2004 EU Enlargement on the Development and Similarity of the Insurance Sectors in the EU

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