The link between life insurance activities and economic growth: Some new evidence

Lee, Chien‐Chiang; Lee, Chi‐Chuan; Chiu, Yi‐Bin

doi:10.1016/j.jimonfin.2012.05.001

Cited by 100 publications

(58 citation statements)

References 48 publications

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“…An underlying assumption of research studies using cross-country and panel data is the existence of an "S curve", where insurance consumption is lower in low-income countries and higher and more dynamic in high-income economies (Outreville, 1990(Outreville, , 1996Enz, 2000;Lee et al, 2013). Further analyses are based on the economic growth literature.…”

Section: A Insurance Use and Economic Growthmentioning

confidence: 99%

Insurance use and economic growth in Latin America. Some panel data evidence

Concha

Taborda

2014

Lec Econ

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Section: A Insurance Use and Economic Growthmentioning

confidence: 99%

Insurance use and economic growth in Latin America. Some panel data evidence

Concha

Taborda

2014

Lec Econ

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“…Insurance company's products are the major instruments for the mobilization of savings of the families, particularly from middle and lower group households. Several research works have identified and analyzed the nexus among the role of insurance sector for stimulating the economic development by mitigating sudden and devastating occurrences (Horng et al, 2012;Lee et al, 2013;Yinusa and Akino, 2013;Taiwo et Al., 2014).…”

Section: Introductionmentioning

confidence: 99%

Determinants of performance of Tunisia insurance companies: case of life insurance

Derbali

Jamel

2018

IJPQM

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Business performance has attracted researchers' attention in the previous literature of corporate finance. However, in the framework of the life insurance sector, they have given a number of attentions. In our paper, we investigate empirically the effect of firm-specific characteristics (size, leverage, tangibility, risk, growth, liquidity and age) on the profitability of eight Tunisian insurance companies during the period of study from 2005 to 2015. The empirical results show that the variables size, age and growth are the most important determinants of the performance of Tunisian insurance companies as measured by Return on Asset ratio. Then, leverage, tangibility, liquidity and risk don't affect the performance of Tunisian insurance companies.

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“…Ward and Zurbruegg (2000) found that insurance leads to economic growth in some OECD countries, but found no relationship for some. Lee et al (2013) estimated bi-directional causality for a sample of 41 countries. This lack of regularity in the findings clearly underlines the need for further research on the relationship, particularly in developing countries, where very little empirical evidence exists.…”

Section: Insurance-economic Growth Nexus: Literature Surveymentioning

confidence: 99%

Insurance - Economic Growth Nexus: Evidence from Botswana

Oitsile

Galebotswe

Sekwati

2018

Asian Economic and Financial Review

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Article HistoryThe paper investigates the influence of insurance penetration on economic growth in Botswana for the period 1994-2013. Using the autoregressive distributed lag (ARDL) bounds test approach to Cointegration by Pesaran et al. (2001) the study finds a negative long-run relationship between insurance penetration and economic growth. This suggests that the recent rapid expansion of the insurance sector could be hurting the economy's long-run growth. We contend that this finding could reflect a savingsubstitution effect in which insurance assets mobilized locally are invested abroad. However, the effect is economically small and statistically significant only at the 10 percent level. Furthermore, there is no evidence that insurance penetration affects growth in the short-run. Nonetheless we argue that there is a need to pay more attention to the insurance sector in financial sector policy analysis, lest it becomes a significant leakage of funds from the income-expenditure stream. Contribution/ Originality:This study contributes to the existing literature on the insurance-growth relationship. The study uses the autoregressive distributed lag (ARDL) bounds test approach to Cointegration to estimate the impact of insurance penetration on the economic growth of Botswana. It is the first study to gauge the quantitative effect of insurance sector development on Botswana's economic growth.

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The link between life insurance activities and economic growth: Some new evidence

Cited by 100 publications

References 48 publications

Insurance use and economic growth in Latin America. Some panel data evidence

Insurance use and economic growth in Latin America. Some panel data evidence

Determinants of performance of Tunisia insurance companies: case of life insurance

Insurance - Economic Growth Nexus: Evidence from Botswana

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