Insurance And Economic Growth: A Cross Country Examination
While insurance plays an important role in the financial sector, it is often ignored in the financial development-economic growth literature. This paper examines the relationship between insurance and economic growth via a global cross-country study over 1980 to 2006, using both cross-sectional estimations and dynamic panel data techniques. The authors find a significant positive relationship between overall insurance growth and economic growth, as well as more specifically for life and non-life insurance. They find weak evidence that a country's stage of development may influence this relationship; but strong evidence that the quality of a country's legal system and protection of property rights is positively related to insurance growth.