 The dynamic linkage between insurance and banking activities: An analysis on insurance sector assetsChi-Hung Chang Journal of Multinational Financial Management, 2018, vol. 46, issue C, 36-50 Abstract: This article investigates the dynamic linkage between insurance and banking activities from the asset size of the insurance sector in the context of a panel vector autoregression (VAR) framework using data for 73 countries from 1980 to 2014. Panel Granger-causality tests show that a Granger causal relation generally runs from banking activities to insurance sector assets. Impulse response analyses for the whole sample demonstrate that the size of insurance assets responds positively to a shock to liquid liabilities and deposits of the financial system, but negatively to a shock to deposit money bank assets as well as private credit issued by commercial banks, other financial institutions, and deposit banks. The observations are qualitatively identical for high-income countries, while the results are largely different for middle- and low-income countries. Moreover, we observe a significant interaction between insurance and banking activities in civil law countries rather than in common law ones. Keywords: Insurance activities; Banking activities; Panel Granger causality test; Panel VAR approach (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:46:y:2018:i:c:p:36-50 DOI: 10.1016/j.mulfin.2018.07.001 Access Statistics for this article Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth More articles in Journal of Multinational Financial Management from Elsevier |
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