The Relationship of Insurance and Economic Growth - A Theoretical and Empirical Analysis
Author | : Peter R. Haiss |
Publisher | : |
Total Pages | : 56 |
Release | : 2011 |
ISBN-10 | : OCLC:1290789133 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book The Relationship of Insurance and Economic Growth - A Theoretical and Empirical Analysis written by Peter R. Haiss and published by . This book was released on 2011 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: The role of insurance companies, although growing in importance in financial intermediation, has received less attention than bank and stock markets and if so, mainly as a provider of risk transfer in single country or very heterogeneous samples. We investigate both the impact of insurance investment and premiums on GDP growth in Europe. We conduct a cross-country panel data analysis from 1992 to 2005 for 29 European countries. We find a positive impact of life insurance on GDP growth in the EU-15 countries, Switzerland, Norway and Iceland. For the New EU Member States from Central and Eastern Europe, we find a larger impact for liability insurance. Furthermore our findings emphasise the impact of the real interest rate and the level of economic development on the insurance-growth nexus. We argue that the insurance sector needs to be paid more attention in financial sector analysis and macroeconomic policy.