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Insurance Premium and Economic Growth: Evidence from OECD Countries

Year 2017, Volume: 5 Issue: 1, 1 - 11, 30.04.2017
https://doi.org/10.22139/jobs.286819

Abstract

In this study that covers
1983-2011 periods, per capita insurance premiums and per capita real GDP
relationship was investigated for 13 OECD countries (USA, Germany, Australia,
Belgium, Finland, France, Holland, Spain, Switzerland, Italy, Iceland, Japan and
Norway). Stationary of series are determined with linear Levin, Lin and Chu
(2002), Im, Pesaran & Shin (2003) and Maddala-Wu (1999), non-linear Uçar
& Omay (2009) panel unit root tests. In the paper in which the
Emirmahmutoğlu & Köse (EK) panel causality test (2011) was used, least one
panel causality was determined from insurance premiums to GDP. Sequential panel
selection method which was developed by Chortareas and Kapetanios (2009) was
used and this causality occurred for respectively France, Iceland, Italy and
Spain and there was no findings observed for the other countries. The findings
of this study have an important place for insurance sector in economy and it
also supports the findings obtained in literature.

References

  • Adams, M., Andersson, J., Andersson, L.F. & Lindmark, M. (2009) “Commercial Banking Insurance and Economic Growth in Sweden between 1830 and 1998”, Accounting Business & Financial History. 19 (1). p. 21–38.
  • Akinlo, T. (2013) “The Causal Relationship between Insurance and Economic Growth in Nigeria (1986-2010)”, Australian Journal of Business and Management Research. 2 (12). p. 49-57.
  • Arena, M. (2008) “Does Insurance Market Activity Promote Economic Growth? A Cross-country Study for Industrialized and Developing Countries”. Journal of Risk and Insurance. 75. p. 921–946.
  • Arestis P. &Demetriades P. (1997) “Financial Development and Economic Growth: Assessing The Evidence”, The Economic Journal. 107 (442). p. 783–799.
  • Avram, K., Nguyen, Y. & Skully, M. (2010) “Insurance and Economic Growth: A Cross Country Examination”, Monash University, Department of Accounting and Finance Working Paper.
  • Beale, L., Ferrando, A., Hördahl, P., Krylova, E. & Monnet, C. (2004) “Measuring Financial Integration in the Euro Area”, Occasional Paper Series No. 14, European Central Bank, Frankfurt, Germany.
  • Boon, T. K. (2005) “Do Commercial Banks, Stock Market and Insurance Market Promote Economic Growth? An Analysis of the Singapore Economy”, Nanyang Technological University, School of Humanities and Social Studies, Working Paper.
  • Chang, T., Cheng, S.H., Pan, G. & Wu, T. (2013) “Does Globalization Affect the Insurance Markets? Bootstrap Panel Granger Causality Test”, Economic Modelling. 33. p. 254–260.
  • Chang, T., Lee, C.C & Chang, C.H. (2014) “Does Insurance Activity Promote Economic Growth? Further Evidence Based on Bootstrap Panel Granger Causality Test”, The European Journal of Finance. 20(12). p. 1187–1210.
  • Chortareas, G. & Kapetanios, G. (2009) “Getting PPP Right: Identifying Mean-Reverting Real Exchange Rates in Panels”, Journal of Banking & Finance. 33(2), p. 390-404.
  • De Fiore, F. & Uhlig, H. (2011) “Bank Finance versus Bond Finance”, Journal of Money, Credit and Banking 43(7), p. 1399–421.
  • Dickey, D.A. & Fuller, W.A. (1979) “Distribution of the Estimators for Autoregressive Time Series with a Unit Root”, Journal of the American Statistical Society. 75, p. 427–431.
  • Dumitrescu, E. & Hurlin, C. (2012) “Testing for Granger Non-Causality in Heterogeneous Panels”, Economic Modelling. 29(4), p. 1450-1460.
  • Emirmahmutoğlu, F. & Kose, N. (2011) “Testing for Granger Causality in The Heterogeneous Mixed Panels”, Economic Modelling. 28, p. 870-876.
  • Fink, G., Haiss, P. & Hristoforova, S. (2005) “Credit, Bonds, Stocks and Growth in Seven Large Economies”, EI Working Papers. 70. Europainstitut.
  • Giannetti, M., L. Guiso, T. Japelli, M. Padula & Pagano M. (2002) “Financial Integration, Corporate Financing and Economic Growth”, European Economy, Economic Papers.
  • Gürsoy, B. & Yilanci, V. (2013) “Financial Liberalization and External Imbalances: The Case of CESEE Countries”, 8th Annual MIBES International Conference, 8-10 June, Greece.
  • Haiss, P. & Sümegi, K. (2008) “The Relationship between Insurance and Economic Growth in Europe: a Theoretical and Empirical Analysis”, Empirica. 35, p. 405–431.
  • Han, L., Li, D., Moshirian, F. & Tian Y. (2010) “Insurance Development and Economic Growth”, The Geneva Papers on Risk and Insurance. 35(3), p.183–99.
  • Horng, M.S., Chang, Y.W. & Wu, T.Y. (2012) “Does Insurance Demand or Financial Development Promote Economic Growth? Evidence from Taiwan”, Applied Economics Letters, 19, p. 105–111.
  • Hussels, S., D. Ward & R. Zurbruegg. (2005) “Stimulating the Demand for Insurance”, Risk Management and Insurance Review, 8(2), p. 257-278.
  • Im, K.S., Pesaran, M.H & Shin, Y. (2003) “Testing for Unit Roots in Heterogeneous Panels”, Journal of Econometrics, 115 (revise version of 1997’s work), p. 53-74.
  • Khan, M.S. & Senhadji. A.S. (2000) “Financial Development and Economic Growth: An Overview”, IMF Working Paper, 00/209, International Monetary Fund, Washington, DC.
  • Kónya, L. (2006) “Exports and Growth: Granger Causality Analysis on OECD Countries with a Panel Data Approach”, Economic Modelling, 23(6): p. 978–92.
  • Kugler, M. & Ofogh, R. (2005) “Does Insurance Promote Economic Growth? Evidence from the UK”, University of Southampton, Division of Economics, Working Paper.
  • Lee, C.C. & Chiu, Y.B (2012) “The İmpact of Real İncome on Insurance Premiums: Evidence from Panel Data”, International Review of Economics and Finance, 21 p. 246-260.
  • Lee, C.C., Lee, C.C. & Chiu, Y.B. (2013) “The Link between Life Insurance Activities and Economic Growth: Some New Evidence”, Journal of International Money and Finance, 32 p. 405–427.
  • Levin A, Lin C.F & Chu C.J. (2002) “Unit Root Tests in Panel Data: Asymptotic and Finite Sample Properties”, Journal of Econometrics, 108 (revise version of 1992’s work), p. 1-24.
  • Levine, R. & Zervos, S. (1998) “Stock Markets, Banks, and Economic Growth”, American Economic Review, 88(3): p. 537-558.
  • Maddala, G.S. & Wu, S. (1999) “A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test”, Oxford Bulletin of Economics and Statistics, 61, p. 631–652,
  • Merton, R. C. (2004) “On Financial Innovation and Economic Growth”, Foreword in Harvard China Review, 5(1), p. 231–48.
  • Nejad, H.R. & Kermani, S.A. (2012) “The Relation between Insurance Development and Economic Growth in Iran”, Finance Management, 47 p. 9079-9087.
  • Rousseau, P. & Wachtel, P. (2005) “Economic Growth and Financial Depth: Is the Relationship Extinct Already?”, Paper presented at WIDER Conference, July, Helsinki.
  • Rousseau, P. & Wachtel, P. (1998) “Financial Intermediation and Economic Performance: Evidence from Five Industrialized Countries”, Journal of Money, Credit and Banking, 30, p. 658–78.
  • Outreville, J. F. (1990) “The Economic Significance of Insurance Markets in Developing Countries”, Journal of Risk & Insurance, 57(3) p. 487–498.
  • Outreville J. F. (1996) “Life Insurance Markets in Developing Countries”, Journal of Risk and Insurance, 63(2) p. 263–278.
  • TODA, H.Y., YAMAMOTO, T. (1995) Statistical Inference in Vector Autoregression with Possibly Integrated Processes, Journal of Econometrics, 66, p. 225–250.
  • Vadlamannati, K. C. (2008) “Do Insurance Sector Growth and Reforms Affect Economic Development? Empirical Evidence from India”, The Journal of Applied Economic Research, 2(1), p. 43–86 Sage Publications.
  • Ward, D. & Zurbruegg, R. (2000) “Does Insurance Promote Economic Growth? Evidence from OECD Economies”, The Journal of Risk and Insurance 67 (4), p. 489–506.
  • Uçar, N. & Omay, T. (2009) “Testing For Unit Root in Nonlinear Heterogeneous Panels”, Economic Letters. 104, p. 5-8.

Sigorta Primi ve Ekonomik Büyüme: OECD Ülkeleri üzerine bir araştırma

Year 2017, Volume: 5 Issue: 1, 1 - 11, 30.04.2017
https://doi.org/10.22139/jobs.286819

Abstract

1983-2011 dönemlerini ele alan bu çalışmada 13 OECD ülkesi (ABD,Almanya,Avustralya, Belçika, Finlandiya, Fransa, Hollanda, İspanya, İsviçre, İtalya, İzlanda, Japonya, Norveç)) için kişi başına sigorta primleri ile kişi başına GSYİH arasındaki ilişki araştırılmıştır. Serilerin durağanlık mertebeleri doğrusal Levin, Lin & Chu (2002) Im, Pesaran & Shin (2003) ve Maddala-Wu (1999); doğrusal olmayan Uçar & Omay (2009) panel birim kök testleriyle belirlenmiştir. Emirmahmutoğlu & Köse panel nedensellik testi (2011)’nin kullanıldığı çalışmada sigorta primlerinden GSYİH’ya doğru en az bir panel nedenselliğin olduğu saptanmıştır. Chortareas and Kapetanios (2009)’un geliştirdiği Ardışık Panel Seçim Method’u kullanılarak bu nedenselliğin sırasıyla Fransa, İzlanda, İtalya ve İspanya için gerçekleştiği, diğer ülkeler içinse herhangi bir bulguya rastlanmadığı görülmüştür. Çalışmamızın bulguları sigorta sektörünün ekonomi içerisinde önemli bir yere sahip olduğunu göstermekte ve literatürde yapılmış çalışmaları destekler niteliktedir

References

  • Adams, M., Andersson, J., Andersson, L.F. & Lindmark, M. (2009) “Commercial Banking Insurance and Economic Growth in Sweden between 1830 and 1998”, Accounting Business & Financial History. 19 (1). p. 21–38.
  • Akinlo, T. (2013) “The Causal Relationship between Insurance and Economic Growth in Nigeria (1986-2010)”, Australian Journal of Business and Management Research. 2 (12). p. 49-57.
  • Arena, M. (2008) “Does Insurance Market Activity Promote Economic Growth? A Cross-country Study for Industrialized and Developing Countries”. Journal of Risk and Insurance. 75. p. 921–946.
  • Arestis P. &Demetriades P. (1997) “Financial Development and Economic Growth: Assessing The Evidence”, The Economic Journal. 107 (442). p. 783–799.
  • Avram, K., Nguyen, Y. & Skully, M. (2010) “Insurance and Economic Growth: A Cross Country Examination”, Monash University, Department of Accounting and Finance Working Paper.
  • Beale, L., Ferrando, A., Hördahl, P., Krylova, E. & Monnet, C. (2004) “Measuring Financial Integration in the Euro Area”, Occasional Paper Series No. 14, European Central Bank, Frankfurt, Germany.
  • Boon, T. K. (2005) “Do Commercial Banks, Stock Market and Insurance Market Promote Economic Growth? An Analysis of the Singapore Economy”, Nanyang Technological University, School of Humanities and Social Studies, Working Paper.
  • Chang, T., Cheng, S.H., Pan, G. & Wu, T. (2013) “Does Globalization Affect the Insurance Markets? Bootstrap Panel Granger Causality Test”, Economic Modelling. 33. p. 254–260.
  • Chang, T., Lee, C.C & Chang, C.H. (2014) “Does Insurance Activity Promote Economic Growth? Further Evidence Based on Bootstrap Panel Granger Causality Test”, The European Journal of Finance. 20(12). p. 1187–1210.
  • Chortareas, G. & Kapetanios, G. (2009) “Getting PPP Right: Identifying Mean-Reverting Real Exchange Rates in Panels”, Journal of Banking & Finance. 33(2), p. 390-404.
  • De Fiore, F. & Uhlig, H. (2011) “Bank Finance versus Bond Finance”, Journal of Money, Credit and Banking 43(7), p. 1399–421.
  • Dickey, D.A. & Fuller, W.A. (1979) “Distribution of the Estimators for Autoregressive Time Series with a Unit Root”, Journal of the American Statistical Society. 75, p. 427–431.
  • Dumitrescu, E. & Hurlin, C. (2012) “Testing for Granger Non-Causality in Heterogeneous Panels”, Economic Modelling. 29(4), p. 1450-1460.
  • Emirmahmutoğlu, F. & Kose, N. (2011) “Testing for Granger Causality in The Heterogeneous Mixed Panels”, Economic Modelling. 28, p. 870-876.
  • Fink, G., Haiss, P. & Hristoforova, S. (2005) “Credit, Bonds, Stocks and Growth in Seven Large Economies”, EI Working Papers. 70. Europainstitut.
  • Giannetti, M., L. Guiso, T. Japelli, M. Padula & Pagano M. (2002) “Financial Integration, Corporate Financing and Economic Growth”, European Economy, Economic Papers.
  • Gürsoy, B. & Yilanci, V. (2013) “Financial Liberalization and External Imbalances: The Case of CESEE Countries”, 8th Annual MIBES International Conference, 8-10 June, Greece.
  • Haiss, P. & Sümegi, K. (2008) “The Relationship between Insurance and Economic Growth in Europe: a Theoretical and Empirical Analysis”, Empirica. 35, p. 405–431.
  • Han, L., Li, D., Moshirian, F. & Tian Y. (2010) “Insurance Development and Economic Growth”, The Geneva Papers on Risk and Insurance. 35(3), p.183–99.
  • Horng, M.S., Chang, Y.W. & Wu, T.Y. (2012) “Does Insurance Demand or Financial Development Promote Economic Growth? Evidence from Taiwan”, Applied Economics Letters, 19, p. 105–111.
  • Hussels, S., D. Ward & R. Zurbruegg. (2005) “Stimulating the Demand for Insurance”, Risk Management and Insurance Review, 8(2), p. 257-278.
  • Im, K.S., Pesaran, M.H & Shin, Y. (2003) “Testing for Unit Roots in Heterogeneous Panels”, Journal of Econometrics, 115 (revise version of 1997’s work), p. 53-74.
  • Khan, M.S. & Senhadji. A.S. (2000) “Financial Development and Economic Growth: An Overview”, IMF Working Paper, 00/209, International Monetary Fund, Washington, DC.
  • Kónya, L. (2006) “Exports and Growth: Granger Causality Analysis on OECD Countries with a Panel Data Approach”, Economic Modelling, 23(6): p. 978–92.
  • Kugler, M. & Ofogh, R. (2005) “Does Insurance Promote Economic Growth? Evidence from the UK”, University of Southampton, Division of Economics, Working Paper.
  • Lee, C.C. & Chiu, Y.B (2012) “The İmpact of Real İncome on Insurance Premiums: Evidence from Panel Data”, International Review of Economics and Finance, 21 p. 246-260.
  • Lee, C.C., Lee, C.C. & Chiu, Y.B. (2013) “The Link between Life Insurance Activities and Economic Growth: Some New Evidence”, Journal of International Money and Finance, 32 p. 405–427.
  • Levin A, Lin C.F & Chu C.J. (2002) “Unit Root Tests in Panel Data: Asymptotic and Finite Sample Properties”, Journal of Econometrics, 108 (revise version of 1992’s work), p. 1-24.
  • Levine, R. & Zervos, S. (1998) “Stock Markets, Banks, and Economic Growth”, American Economic Review, 88(3): p. 537-558.
  • Maddala, G.S. & Wu, S. (1999) “A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test”, Oxford Bulletin of Economics and Statistics, 61, p. 631–652,
  • Merton, R. C. (2004) “On Financial Innovation and Economic Growth”, Foreword in Harvard China Review, 5(1), p. 231–48.
  • Nejad, H.R. & Kermani, S.A. (2012) “The Relation between Insurance Development and Economic Growth in Iran”, Finance Management, 47 p. 9079-9087.
  • Rousseau, P. & Wachtel, P. (2005) “Economic Growth and Financial Depth: Is the Relationship Extinct Already?”, Paper presented at WIDER Conference, July, Helsinki.
  • Rousseau, P. & Wachtel, P. (1998) “Financial Intermediation and Economic Performance: Evidence from Five Industrialized Countries”, Journal of Money, Credit and Banking, 30, p. 658–78.
  • Outreville, J. F. (1990) “The Economic Significance of Insurance Markets in Developing Countries”, Journal of Risk & Insurance, 57(3) p. 487–498.
  • Outreville J. F. (1996) “Life Insurance Markets in Developing Countries”, Journal of Risk and Insurance, 63(2) p. 263–278.
  • TODA, H.Y., YAMAMOTO, T. (1995) Statistical Inference in Vector Autoregression with Possibly Integrated Processes, Journal of Econometrics, 66, p. 225–250.
  • Vadlamannati, K. C. (2008) “Do Insurance Sector Growth and Reforms Affect Economic Development? Empirical Evidence from India”, The Journal of Applied Economic Research, 2(1), p. 43–86 Sage Publications.
  • Ward, D. & Zurbruegg, R. (2000) “Does Insurance Promote Economic Growth? Evidence from OECD Economies”, The Journal of Risk and Insurance 67 (4), p. 489–506.
  • Uçar, N. & Omay, T. (2009) “Testing For Unit Root in Nonlinear Heterogeneous Panels”, Economic Letters. 104, p. 5-8.
There are 40 citations in total.

Details

Subjects Business Administration
Journal Section Kapak, Kurullar ve Bibliyografik Bilgi
Authors

Şuayyip Doğuş Demirci 0000-0002-7849-275X

Feyyaz Zeren

Publication Date April 30, 2017
Submission Date January 21, 2017
Acceptance Date March 19, 2017
Published in Issue Year 2017 Volume: 5 Issue: 1

Cite

APA Demirci, Ş. D., & Zeren, F. (2017). Sigorta Primi ve Ekonomik Büyüme: OECD Ülkeleri üzerine bir araştırma. İşletme Bilimi Dergisi, 5(1), 1-11. https://doi.org/10.22139/jobs.286819

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