Insurance and Economic Growth: A Cross Country Examination
45 Pages Posted: 23 Jul 2010 Last revised: 21 Sep 2010
Date Written: August 23, 2010
Abstract
While insurance plays an important role in the financial sector, it is often ignored in the financial development-economic growth literature. This paper examines the relationship between insurance and economic growth via a global cross-country study over 1980 to 2006, using both cross-sectional estimations and dynamic panel data techniques. We find a significant positive relationship between economic growth and overall insurance, as well as more specifically for life and non-life insurance. We find weak evidence that a country’s stage of development may influence this relationship; but strong evidence that the quality of a country’s legal system and protection of property rights is positively related to insurance growth. The study adds to the existing literature in respect to the legal factors as well as offers further support for the role of insurance in the finance-growth literature.
Keywords: Insurance, Economic Growth, Life Insurance
JEL Classification: G22
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Financial Dependence and Growth
By Raghuram G. Rajan and Luigi Zingales
-
Stock Markets, Banks, and Growth: Panel Evidence
By Thorsten Beck and Ross Levine
-
Stock Markets, Banks, and Growth: Panel Evidence
By Thorsten Beck and Ross Levine
-
Stock Markets, Banks, and Economic Growth
By Ross Levine and Sara Zervos
-
Financial Development and Economic Growth: Views and Agenda
By Ross Levine
-
Stock Markets, Banks, and Growth: Correlation or Causality
By Thorsten Beck and Ross Levine
-
By Thorsten Beck, Asli Demirgüç-kunt, ...
-
Finance, Firm Size, and Growth
By Thorsten Beck, Asli Demirgüç-kunt, ...
-
Finance, Firm Size, and Growth
By Thorsten Beck, Asli Demirgüç-kunt, ...
-
Financial Intermediation and Growth: Causality and Causes
By Ross Levine, Norman Loayza, ...