Purpose
The purpose of this paper is to explore the relationship between insurance and economic growth for six (developed, emerging and developing) countries over the period of 1980 to 2015.
Design/methodology/approach
The study applies panel auto-regressive distributed lagged (PMG/ARDL) method to examine long-term and short-term relationship between insurance and economic growth for the USA, the UK, China, India, Malaysia and Pakistan.
Findings
The authors concluded that there exists a positive and significant relationship between life insurance, non-life insurance, trade openness, stock-market development and economic growth in the long run as p-value is less than 5 per cent. This study also found a significant relationship between employment rate, banking development and economic growth for the long run but the direction is negative. Foreign direct investment shows an insignificant relationship with economic growth in the long run. The results highlighted a significant and positive relationship between non-life insurance and economic growth in the short-run for the USA, the UK, China, India, Malaysia and Pakistan. Moreover, the relationship between life insurance and economic growth is positive and significant for India, Pakistan and the UK. Results reveal a significant but a negative relationship between life insurance and economic growth for the USA, China and Malaysia.
Research limitations/implications
Analysis is performed for only six countries and results of these six might not represent the whole world.
Practical implications
This research would help policymaker to consider wider aspects of insurance rather than considering it complementary service industry.
Social implications
Every individual, today, spends a huge amount of funds to purchase insurance. He or she should be aware of the wider social impact of their spending apart from risk transferring.
Originality/value
Researchers recently shifted their focus to investigate the relationship between insurance and economic growth but the topic is still lacking sufficient literature and various knowledge gaps. The study is an attempt to contribute in terms of refinement of the already existing body of knowledge and to fill literature gap. In addition, apart from the insurance–economy relationship, very few empirical studies used financial, banking and stock market along with insurance, proxies to measure accurate insurance contribution. Another element of originality lies in the comparative analysis of developed, emerging and developing countries.
Fraud has become the most viable threat to the global economy requiring maximum attention of forensic accountants and traditional auditors, as well as anti-graft bodies worldwide. The primary objective of this paper is to discuss the process of screening, editing and preparation of initial data collected, before any further multivariate analysis of the study regarding the relationship between fraud risk management and risk culture on bank performance. A survey method was employed to administer a total of 417 questionnaires to either the senior officer in the risk management department, internal control department, and branch manager of each bank in the Nigerian banking sector. The questionnaire is a 5 point Likert-scale. The data was analyzed using Statistical Package for the Social Sciences (SPSS) version 23 (v23). The initial data screening and cleaning were conducted as an attempt to fulfill the assumptions of multivariate analysis. Therefore, the present study assessed missing values, outliers, normality test, collinearity test, common method variance, and test of nonresponse bias with the help of SPSS V23. The results have shown that the data satisfied the multivariate analysis assumptions which indicate the fulfillment of conditions for further multivariate analysis.
Previous studies found inconsistent results for insurance-growth nexus. The aim of this study is to examine the relationships between life and non-life insurance with economic growth. The study applies pooled mean group method to examine long-term and short-term insurance-growth nexus over the period of 1980 to 2015. The findings of the study show that there exists a positive and significant relationship between life insurance and economic growth in the long-term and short-term for all selected countries, except when insurance penetration is used as a proxy. However, a positive and significant relationship was observed for non-life insurance and economic growth for all four proxies in the longterm and short-term. The relationship between insurance and economic growth is found to be different across countries and across proxies because of diverse factors such as diversity and variety of insurance products, religious and cultural traditions, level of education, and State involvement, not covered in this research.
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