Insurance Activity and Economic Performance: Fresh Evidence from Asymmetric Panel Causality Tests
Abdulnasser Hatemi-J (),
Chien-Chiang Lee () and
Rangan Gupta ()
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Chi-Chuan Lee: School of Management, Beijing Normal University Zhuhai, Zhuhai, China
No 201828, Working Papers from University of Pretoria, Department of Economics
Insurance plays a fundamental role in any modern economy, but the literature has not accounted for the potential asymmetric causal impacts from the dynamic interaction between the insurance market and economic performance. This paper aims to fill this gap by studying the causal relationship between several measures of insurance per capita and real GDP per capita in the G7 countries over the period 1980-2014 via asymmetric panel causality tests. Our results show that insurance market activity and economic performance exhibit bidirectional causalities, but their direction, intensity, and significance are different due to distinct market situations. In general, insurance activity plays a passive role on economic performance, while economic performance has an aggressive role on insurance activity. These findings offer several useful insights for policy-makers and researchers.
Keywords: Insurance market activity; GDP per capita; Asymmetric panel causality; G7 countries (search for similar items in EconPapers)
JEL-codes: C33 G22 O16 (search for similar items in EconPapers)
Pages: 29 pages
New Economics Papers: this item is included in nep-fdg and nep-ias
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Journal Article: Insurance activity and economic performance: Fresh evidence from asymmetric panel causality tests (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:201828
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