Work

Does the Insurance Sector Really Matter for Economic Growth? Evidence From Central and Eastern European Countries

Year: 2021

Type: article

Abstract: This paper analyses the impact of insurance sector development on economic growth based on a sample that includes 14 Central and Eastern European (CEE) post-transition countries for a period of 19 years, from 1998 to 2016. Considering the presence of cross-section dependence and multiple structural breaks, recently developed panel econometric techniques were employed and led to the following conclusions: (1) life insurance has no significant effect on economic growth in both panel and individual countries, (2) non-life insurance positively affects economic growth in both panel and individual countries, (3) Dumitrescu and Hurlin causality test indicates a unidirectional causality running from economic growth to both life and non-life insurance and infers the absence of causal connection between life and non-life insurance and economic growth.

Source: Journal of Business Economics and Management

DOI: 10.3846/jbem.2021.14287

Authors: Yilmaz Bayar, Marius Dan Gavriletea, Dan Constantin Danuletiu

Institutions: Bandırma Onyedi Eylül University, Babeș-Bolyai University, 1 Decembrie 1918 University

Language: English

Topic: Insurance and Financial Risk Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $647