Hubungan Asuransi dan Pertumbuhan Ekonomi di Indonesia

Relationship between Insurance and Economic Growth in Indonesia

Muhammad Nizar

MPRA Paper from University Library of Munich, Germany

Abstract: This study aims to examine the relationship between insurance and economic growth in Indonesia in the period 1984 - 2014. Using time series data and the Vector Autoregressive (VAR) model, this study analyzes the effect of insurance variables on economic growth and the effect of economic growth on insurance variables. The analysis shows that: (i) life insurance premiums have a positive effect on economic growth for 7 periods (years); (ii) non-life insurance premiums have a positive effect on economic growth for 4 years; (iii) the number of insurance policies negatively influences economic growth for 4 years. On the other hand, the results of the analysis show that economic growth: (i) has a positive effect on the growth of life insurance premiums for a year; (ii) a positive effect on the growth of non-life insurance premiums for a year; and (iii) has a negative effect on the growth of the number of insurance policies for 2 years. Therefore, it needs various efforts that can transform the habits of the people who were originally still low in interest (literacy) to invest in insurance activities and products into an insurance-literate society.

Keywords: life insurance; non-life insurance; density; intermediation; penetration; economic growth; insurance premium; Vector Autoregressive (search for similar items in EconPapers)
JEL-codes: C22 E44 G22 O11 O16 (search for similar items in EconPapers)
Date: 2016-11-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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