The Relatıonshıp Between Partıcıpatıon Insurance and Economıc Growth and Consumer Confıdence Index

Abstract

Insurance protects individuals and assets against potential risks and their negative economic effects. In the current system, conventional insurance is a type of insurance that includes applications such as interest, gambling, and garar. Apart from these practices, the insurance system, which takes its source from Islamic principles, is participation insurance. In this study, general information about participation insurance is included and the relationship between participation insurance, economic growth, and consumer confidence index is discussed in Turkey in particular. The sample of the study consists of 50 observations covering the period 2009Q4– 2022Q1. In the study, the causality relationship between the variables related to participation insurance was investigated by VAR analysis and Granger Causality Test. According to the findings obtained because of the analysis, while there is a two-way causality relationship between participation insurance operating in Turkey and economic growth, no causality relationship was found with the consumer confidence index. The results of the study are in line with theoretical studies and coincide with the results of previous empirical studies. In this context, since the growth of participation insurance will mean the growth of the country's economy, it is expected that the public authority will play a greater role in the planned growth of the sector.