DOES THE INSURANCE SECTOR REALLY MATTER FOR ECONOMIC GROWTH? EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN COUNTRIES | Zendy

Yılmaz Bayar | Zendy; Marius Dan Gavriletea | Zendy; Dan Constantin Dănulețiu | Zendy

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DOES THE INSURANCE SECTOR REALLY MATTER FOR ECONOMIC GROWTH? EVIDENCE FROM CENTRAL AND EASTERN EUROPEAN COUNTRIES

Author(s) -

Yılmaz Bayar,

Marius Dan Gavriletea,

Dan Constantin Dănulețiu

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.

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