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Life Insurance Development and Economic Growth: Evidence from Developing Countries

Relwende Sawadogo, Samuel Guerineau and Idrissa M. Ouedraogo (resawadogo@yahoo.fr)
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Relwende Sawadogo, Samuel Guerineau and Idrissa M. Ouedraogo: University of Ouaga 1, Clermont University and University of Ouaga 2

Authors registered in the RePEc Author Service: Relwendé SAWADOGO

Journal of Economic Development, 2018, vol. 43, issue 2, 1-28

Abstract: This article examines the relation between the development of life insurance sector and economic growth, for a sample of 86 developing countries over the period 1996-2011. We also examine the heterogeneous effect of life insurance on growth. The results show on the one hand that the development of life insurance has a positive effect on economic growth per capita and, on the other hand, that this effect varies according to the structural characteristics of countries. Thus, the marginal positive impact of the development of life insurance decreases with the levels of deposit interest rate, bank credit and stock market value traded, while the effect is greater in low and middle-income countries and in countries with high-quality institutions. Finally, life insurance effect on growth is less for SSA countries and British legal system countries. These results provide important policy implications for developing countries. Thus, countries will benefit from strengthening their regulatory framework by creating a sound environment that facilitates insurance markets¡¯ development, which further stimulates economic growth.

Keywords: Life Insurance Market; Economic Growth; Developing Countries (search for similar items in EconPapers)
JEL-codes: G22 O11 O57 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Life insurance development and economic growth: Evidence from developing countries (2018)
Working Paper: Life Insurance Development and Economic Growth: Evidence from Developing Countries (2016) Downloads
Working Paper: Life Insurance Development and Economic Growth: Evidence from Developing Countries (2016) Downloads
Working Paper: Life Insurance Development and Economic Growth: Evidence from Developing Countries (2016) Downloads
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