Open AccessDOES THE INSURANCE SECTOR REALLY MATTER FOR ECONOMIC GROWTH? EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN COUNTRIES
Author(s) -
Yılmaz Bayar,
Marius Dan Gavriletea,
Dan Dănuleţiu
Publication year - 2021
Publication title -
journal of business economics and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.485
H-Index - 37
eISSN - 1611-1699
pISSN - 2029-4433
DOI - 10.3846/jbem.2021.14287
Subject(s) - causality (physics) , economics , life insurance , panel data , sample (material) , monetary economics , macroeconomics , econometrics , actuarial science , chemistry , physics , chromatography , quantum mechanics
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.