Open AccessInsurance Development and Economic Growth: An Examination of the Non-Bank Financial Institutions in Nigeria
Author(s) -
David Okelue Ugwunta,
Uche Boniface Ugwuanyi
Publication year - 2019
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v10n2p16
Subject(s) - asset (computer security) , regression analysis , financial sector , investment (military) , business , central bank , economics , financial system , finance , actuarial science , monetary economics , monetary policy , computer security , machine learning , politics , computer science , political science , law
This paper determined the effect of the development of non-bank financial institutions on Nigeria’s economic growth. Time series data, spanning a period of forty-one years, from 1970-2010 obtained from the Central Bank of Nigeria statistical bulletin were tested for stationarity. To measure the relationship and the impact of the explanatory variables on economic growth, the paper adopted a generic regression equation. Results suggest that total trade; investments of the insurance sector in financial asset; and insurance premiums have a high, positive and direct relationship with economic growth. Overall, our findings revealed that the focal variables insurance sector investment in financial assets; and insurance sector premiums significantly contribute to the economic growth of Nigeria.