Relationship Between Insurance Market and Economic Growth in the European Union
Bibliographic Data
| ID | 10713993 |
|---|---|
| Authors | Mirela Mitrasević (0000-0001-5393-4139, University of East Sarajevo), Miloš Pjanić (0000-0001-8521-8559, University of Novi Sad), Milijana Novovic Burić (0000-0001-7671-6468, University of Montenegro) |
| Year | 2022 |
| Volume | 70 |
| Issue | 4 |
| Pages | 395-420 |
| Publication date | 2022-09-15 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Politická ekonomie (JOURNAL) |
| Journal identifiers | ISSN: 0032-3233 • E-ISSN: 2336-8225 |
| Publisher | Prague University of Economics and Business (PUBLISHER • CZ) |
| DOI | 10.18267/j.polek.1358 |
| OpenAlex | W4295791444 |
| Language | EN |
| References cited | 28 |
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 long-term 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
Econometrics · Economics · European union · Gross domestic product · International economics · Macroeconomics · Monetary economics · Panel analysis · Panel data · Per capita · Population · Real gross domestic product · Global Health Care Issues · Insurance and Financial Risk Management · Insurance, Mortality, Demography, Risk Management
New Introduction to Multiple Time Series Analysis
A Simple Test for Heteroscedasticity and Random Coefficient Variation
Testing for Autocorrelation in Dynamic Linear Models
Statistical inference in vector autoregressions with possibly integrated processes
Unit root tests for panel data
Efficient tests for normality, homoscedasticity and serial independence of regression residuals
Distribution of the Estimators for Autoregressive Time Series With a Unit Root
Pooled Mean Group Estimation of Dynamic Heterogeneous Panels
Panel Cointegration
Bounds testing approaches to the analysis of level relationships
Investigating Causal Relations by Econometric Models and Cross-spectral Methods
The relationship between insurance and economic growth
Financial Development and Economic Growth in Underdeveloped Countries
| Highly cited | No |
|---|