Causal Relation between Life Insurance Funds and Economic Growth Evidence from Malaysia

Insurance market density and economic growth in Eurozone countries: the granger causality approach

“…This supports the demand-following hypothesis (DFH 1 ) of insurance market-growth nexus. This finding is consistent with the findings of earlier studies by Alhassan and Biekpe (2016), Pradhan et al (2015aPradhan et al ( , 2015b, Chang et al (2014), Guochen and Wei (2012), Lee (2011), Ching et al (2010), and Catalan et al (2000. Furthermore, for Ireland, Italy, and the European Zone panel, there is a bidirectional causality between life insurance density and economic growth (LID <= > GDP].…”

“…The studies supporting DFH are Alhassan and Biekpe (2016), Pradhan et al (2015aPradhan et al ( , 2015b, Chang et al (2014), Ching et al (2010), Guochen and Wei (2012), Lee (2011), Kugler and Ofoghi (2005), Beck and Webb (2003), and Ward and Zurbruegg (2000).…”

The link between life insurance activities and economic growth: Some new evidence

“…6 The increased importance of the insurance sector is recognized by both insurers and the insured, because of the rise in risks and uncertainties in most societies. Because the life insurance sector has been growing rapidly, as mentioned earlier, its role is not just limited to providing protection to the insured, as it has a more prominent role in financial intermediation (Ching et al, 2010). In 2005, for example, the total assets of insurance companies were about US$17 trillion and institutional investors, such as insurance companies and mutual and pension funds, managed around 44% of an average household's holdings (Haiss and Sümegi, 2008).…”

The dynamics of insurance sector development, banking sector development and economic growth: Evidence from G-20 countries

“…Therefore, during the past several years, they have directed considerable efforts toward changing the structure of these financial systems and controlling their operations in order to channel savings to investments, which are crucial components of development programs (Outreville, 1990;UNCTD, 1988 contributes to economic growth, both as a financial intermediary and as a provider of risk transfer and indemnification, by allowing different risks to be managed more efficiently and by mobilizing domestic savings (Ward & Zubruegg, 2000). The relationship between insurance sector development 2 and economic growth 3 has been extensively documented in the financial literature using an array of econometric techniques, such as cross-country, time series, panel data, and firm level studies: for example, Arena (2008), Avram, Nguyen, and Skully (2010), Chang, Cheng, et al (2013), Chang, Lee, and Chang (2013), Chen, Lee, and Lee (2012), Ching, Kogid, and Furuoka (2010), Curak, Loncar, andPoposki (2009), Enz (2000), Haiss and Sumegi (2008), Han et al (2010), Lee (2011), Lee and Chiu (2012), Lee, Kwon, and Chung (2010), Lee, Chang, and Chen (2012), Lee, Lee, et al (2013), Chiu, Tsong, Yang and, Ward and Zubruegg (2000), and Webb, Grace, and Skipper (2005). By and large, the empirical evidence has demonstrated that there is a positive long-run association between the indicators of insurance sector development and economic growth.…”