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Insurance effect on economic growth: a study of selected economies in various phases of development

Previous studies found inconsistent results for insurance-growth nexus. The aim of this study is to examine the relationships between life and non-life insurance with economic growth, and marine insurance with trade openness. This study is different from previous studies in a number of aspects. Firs...

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Main Author: Ul Din, Sajid Mohy
Format: Thesis
Language:English
English
English
English
Published: 2019
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/8555/1/depositpermission_s900345.pdf
https://etd.uum.edu.my/8555/2/s900345_01.pdf
https://etd.uum.edu.my/8555/3/s900345_02.pdf
https://etd.uum.edu.my/8555/4/s900345_references.docx
https://etd.uum.edu.my/8555/
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spelling my.uum.etd.85552021-08-16T03:52:03Z https://etd.uum.edu.my/8555/ Insurance effect on economic growth: a study of selected economies in various phases of development Ul Din, Sajid Mohy HG Finance Previous studies found inconsistent results for insurance-growth nexus. The aim of this study is to examine the relationships between life and non-life insurance with economic growth, and marine insurance with trade openness. This study is different from previous studies in a number of aspects. Firstly, previous studies utilized a single proxy to investigate the insurance-growth nexus. This study utilized four proxies namely net written premium, insurance penetration, insurance density and premium adjusted for population and GDP. Secondly, previous studies assumed common insurance coefficients across countries and emphasizing on the long-term homogeneity aspect only whilst this study accounted for both long-term homogeneity and short-term heterogeneity. The study applies pooled mean group method to examine long-term and short-term relationships between insurances and economic growth for the USA, the UK, China, India, Malaysia and Pakistan over the period of 1980 to 2015. The findings of the study show that there exists a positive and significant relationship between life insurance and economic growth in the long-term and short-term for all selected countries, except when insurance penetration is used as a proxy. However, a positive and significant relationship was observed for non-life insurance and economic growth for all four proxies in the long-term and short-term. The relationship between insurance and economic growth is found to be different across countries and across proxies. Contrary to the previous studies, this study found a significant negative relationship between marine insurance and trade openness in the long-term. This study has important policy implications. Policy interventions such as introducing new insurance products, improving distribution channels, reducing deductibles, facilitating cross border transferability of insurance policies, and increasing insurance awareness campaign may be needed to achieve short-term and long-term growth objectives. Whilst policy makers may need to offer some kind of subsidy or promote competition for marine insurance to make its contribution significantly positive for trade openness. 2019 Thesis NonPeerReviewed text en https://etd.uum.edu.my/8555/1/depositpermission_s900345.pdf text en https://etd.uum.edu.my/8555/2/s900345_01.pdf text en https://etd.uum.edu.my/8555/3/s900345_02.pdf text en https://etd.uum.edu.my/8555/4/s900345_references.docx Ul Din, Sajid Mohy (2019) Insurance effect on economic growth: a study of selected economies in various phases of development. Doctoral thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
English
English
topic HG Finance
spellingShingle HG Finance
Ul Din, Sajid Mohy
Insurance effect on economic growth: a study of selected economies in various phases of development
description Previous studies found inconsistent results for insurance-growth nexus. The aim of this study is to examine the relationships between life and non-life insurance with economic growth, and marine insurance with trade openness. This study is different from previous studies in a number of aspects. Firstly, previous studies utilized a single proxy to investigate the insurance-growth nexus. This study utilized four proxies namely net written premium, insurance penetration, insurance density and premium adjusted for population and GDP. Secondly, previous studies assumed common insurance coefficients across countries and emphasizing on the long-term homogeneity aspect only whilst this study accounted for both long-term homogeneity and short-term heterogeneity. The study applies pooled mean group method to examine long-term and short-term relationships between insurances and economic growth for the USA, the UK, China, India, Malaysia and Pakistan over the period of 1980 to 2015. The findings of the study show that there exists a positive and significant relationship between life insurance and economic growth in the long-term and short-term for all selected countries, except when insurance penetration is used as a proxy. However, a positive and significant relationship was observed for non-life insurance and economic growth for all four proxies in the long-term and short-term. The relationship between insurance and economic growth is found to be different across countries and across proxies. Contrary to the previous studies, this study found a significant negative relationship between marine insurance and trade openness in the long-term. This study has important policy implications. Policy interventions such as introducing new insurance products, improving distribution channels, reducing deductibles, facilitating cross border transferability of insurance policies, and increasing insurance awareness campaign may be needed to achieve short-term and long-term growth objectives. Whilst policy makers may need to offer some kind of subsidy or promote competition for marine insurance to make its contribution significantly positive for trade openness.
format Thesis
author Ul Din, Sajid Mohy
author_facet Ul Din, Sajid Mohy
author_sort Ul Din, Sajid Mohy
title Insurance effect on economic growth: a study of selected economies in various phases of development
title_short Insurance effect on economic growth: a study of selected economies in various phases of development
title_full Insurance effect on economic growth: a study of selected economies in various phases of development
title_fullStr Insurance effect on economic growth: a study of selected economies in various phases of development
title_full_unstemmed Insurance effect on economic growth: a study of selected economies in various phases of development
title_sort insurance effect on economic growth: a study of selected economies in various phases of development
publishDate 2019
url https://etd.uum.edu.my/8555/1/depositpermission_s900345.pdf
https://etd.uum.edu.my/8555/2/s900345_01.pdf
https://etd.uum.edu.my/8555/3/s900345_02.pdf
https://etd.uum.edu.my/8555/4/s900345_references.docx
https://etd.uum.edu.my/8555/
_version_ 1709670598587711488
score 13.211869

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