Insurance penetration and economic growth nexus: Cross-country evidence from ASEAN

Pradhan, Rudra P.; Arvin, B. Mak; Norman, Neville R.; Nair, Mahendhiran; Hall, John H.

doi:10.1016/j.ribaf.2015.09.036

Cited by 79 publications

(59 citation statements)

References 43 publications

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“…They found that in developing Asia, per capita income, rule of law, and population size increase financial inclusion, while age dependency ratio lowers financial inclusion [23]. Pradhan et al (2016) investigated the Granger causal relationships between insurance market penetration, broad money, stock-market capitalization, and economic growth, using panel data for the association of south east asian nations regional forum countries for the 1988-2012 period [16]. Boukhatem (2016) identified the channels through which financial development affected poverty.…”

Section: Literature Reviewmentioning

confidence: 99%

“…With the interest of people from all over the world, financial inclusion has become a hot topic in academia.The present research can mainly be divided into two categories. One was to discuss on measuring the financial inclusion index or the level of financial inclusion with country level or zone level data (Sarma, 2008; Adalessossi and Kaya, 2015; Ambarkhane et al, 2016; Kumari, 2017; Wang and Guan, 2017) [5][6][7][8][9]; the other was exploring the correlation between financial inclusion and the development of economic factors or society factors (Naceur and Ghazouani, 2007 [10][11][12][13][14][15][16][17][18]. In particular, Kim et al (2018) studied the correlation between financial inclusion and economic growth in Organization of Islamic Cooperation (OIC) countries [18].…”

Section: Introductionmentioning

confidence: 99%

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The Sustainable Development of Financial Inclusion: How Can Monetary Policy and Economic Fundamental Interact with It Effectively?

Yin

Chen

et al. 2019

Sustainability

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It is necessary to analyze the relationship between financial inclusion and circumstances-monetary policy and economic fundamentals, which has a practical reference value for policy makers. This paper studies the impact of the circumstances on financial inclusion factors by using a vector autoregressive method. Empirical results show that monetary policy has a short-term positive impact on financial inclusion factors, while the economic fundamental has the opposite, which means that the positive monetary policy promote the development of financial inclusion in the short term and the sudden change of the economic situation will make it harder. Based on the data of the World Bank and the situation of China, we make an analysis and comparison of the empirical results, and draw two implications: first, the sustainable development of financial inclusion needs a suitable circumstance; second, the appropriate coordination and mutual facilitation of economic fundamentals and finance is conducive to the sustainable development of financial inclusion.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Sustainable Development of Financial Inclusion: How Can Monetary Policy and Economic Fundamental Interact with It Effectively?

Yin

Chen

et al. 2019

Sustainability

View full text Add to dashboard Cite

show abstract

“…Their position is that improved financial sector performance positively affects economic growth; this increased growth in turn further stimulates increased demand for financial services. Such studies include Kugler and Ofoghi (2005), and Pradhan et al (2016) who find bi-directional causality between insurance market activity and economic growth, while Al-Yousif (2002), Wolde-Rufael (2009), and Pradhan et al…”

Section: Literature Reviewmentioning

confidence: 99%

The synergistic effect of insurance and banking sector activities on economic growth in Africa

2018

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Highlights• We evaluate the synergistic effect of financial sectors on economic growth in African countries.• The insurance-banking-growth nexus is examined through bootstrap panel causality tests.• The relationship between insurance and banking is a complimentary one and their synergistic impact on growth is positive.• The feedback hypothesis is confirmed in the relationship between finance and growth. AbstractIt is widely understood that the insurance and banking sectors of every economy perform some functions in driving economic growth. What is not yet well documented is whether their roles are complimentary or substitutive. With the aid of the dynamic panel-GMM estimation technique, this paper evaluates the synergistic effect of both sectors on economic growth in a panel of 11 African countries that are responsible for most of the activities in the continent's financial sector. The insurance-banking-growth nexus was also examined through panel causality tests. The resultsshow that life insurance market and the banking sector are complimentary and that the non-life insurance market and the banking sector are also complimentary. We find that overall, the relationship between the insurance and banking sectors in Africa is a complimentary one and that their synergistic impact on economic growth is positive. The feedback hypothesis was also confirmed in the relationship between the insurance sector and economic growth and between the banking sector and economic growth.

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“…The result exposed a positive and significant relationship between total insurance and economic growth for the countries above but a negative between insurance and economic growth exist for Pakistan in relation to the variable, international trade. Pradhan et al (2016) studied the links between insurance penetration, market capitalization, broad money and economic growth in South East Asian nations using data from 1988 to 2012. The study uses the Granger causality approach, the study found that insurance penetration and economic growth are cointegrated.…”

Section: Insurance and Economic Growthmentioning

confidence: 99%

“…Al-Yousif (2002) studied 30 emerging nations and the study covers the period 1970 to 1999. The areas studied for Calderon and Liu (2003) is 109 countries and from 1960 to 1994 while Chow and Fung (2011) and Hsueh et al (2013) covers 69 countries and 10 Asian countries, and 1970-2004 and 1980-2007 respectively. Related studies on market capitalization and economic growth as stated by Pradhan et al (2016) are Dritsaki and Dritsaki-Bargiota (2005)…”

Section: Insurance and Economic Growthmentioning

confidence: 99%

Impact of Non-life Insurance Penetration on the Economic Growth of Nigeria

2020

RJFA

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This study explores the impact of non-life insurance industry performance on economic growth in Nigeria. Insurance penetration is measured through five diverse proxies such as non-life insurance, savings, expenditures, investment and profits of the insurance industry with their time-series statistics covering the period 1988 and 2012. The ex-post facto research strategy and purposive (judgemental) sampling technique were discovered appropriate for the study as effectively utilised by several intellectuals in the past. Data were analysed using regression. The ordinary least square regression was adopted for the testing of the hypotheses. The outcomes of the study showed that non-life insurance penetration had a substantially positive effect on the economic growth in Nigeria during the period. Profit and investment are found to have a positive effect on the economy but statistically insignificant while Savings and government expenditure have an adverse effect on the economy. The study recommends an improved modification in insurance products, especially in non-life businesses to availing clients the chance of choosing from a diversity of products. The study, therefore, recommends an increase in the awareness of non-life insurance services for its impact to be felt at all levels and to encourage participation.

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Insurance penetration and economic growth nexus: Cross-country evidence from ASEAN

Cited by 79 publications

References 43 publications

The Sustainable Development of Financial Inclusion: How Can Monetary Policy and Economic Fundamental Interact with It Effectively?

The Sustainable Development of Financial Inclusion: How Can Monetary Policy and Economic Fundamental Interact with It Effectively?

The synergistic effect of insurance and banking sector activities on economic growth in Africa

Impact of Non-life Insurance Penetration on the Economic Growth of Nigeria

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