Commercial banking, insurance and economic growth in Sweden between 1830 and 1998

Abstract

We examine empirically the dynamic historical relation between commercial bank lending, insurance and economic (income) growth in Sweden using time-series data from 1830 to 1998 and performing tests for Granger causality. Because of the non-stationary nature of the time series examined the procedure of Toda and Yamamoto (1995) is used. Our results, which have accounted for possible regime changes due to different exchange rate mechanisms over time, indicate that insurance has Granger-caused economic growth and bank lending. Therefore, we conclude that insurance is an important prerequisite for stimulating economic growth and that this could have important implications for contemporary developing economiesbanking, insurance, economic growth, history, Sweden,

Insurance and Economic Development in Nigeria: Co-Integration and Causality Analysis

“…This exemplifies that insurance helped to stimulate economic growth and sustain the regional slave-based economy up to the end of the Civil War in 1865. MacMinn (1987) in Adams et al (2000) reports that insurance can further provide an important post-loss financing function and mitigate agency problems such as the under-investment incentive that can occur in (particularly highly levered) companies that suffer a large asset loss. This leads to insurance having positive externalities in terms of employment creation, increased economic activity, business innovation and risk taking.…”

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

“…Here, the Granger causality runs from insurance market activities to economic growth. The studies supporting SLH are Alhassan and Biekpe (2016), Pradhan et al (2017Pradhan et al ( , 2015, Alhassan and Fiador (2014), Chang et al (2014), Lee et al (2013aLee et al ( , 2013b, Guochen and Wei (2012), Lee (2011), Adams et al (2009), Kugler and Ofoghi (2005), and Boon (2005).…”

“…Like other financial services, such as banking and stock market activities, insurance market activities play a key role in economic growth (see, inter alia, Chang et al 2014;Ghosh 2013;Garcia 2012;Webb et al 2005aWebb et al , 2005bAdams et al 2009;Li et al 2007;Webb et al 2005aWebb et al , 2005bOutreville 1996) Insurance market activities serve a number of valuable economic functions that are largely distinct from other types of financial intermediaries, such as banking and stock market activities. The insurance market activities-both as a provider of risk transfer and indemnification and as an institutional investor-may contribute to economic growth in the following ways: promoting financial stability, facilitating trade and commerce, mobilizing domestic savings, allowing different risks to be managed more efficiently, encouraging the accumulation of new capital, fostering a more efficient allocation of domestic capital, and helping to reduce or mitigate losses (see, inter alia, Pradhan et al 2015aPradhan et al , 2015bLee et al 2013aLee et al , 2013bBillio et al 2012;Guochen and Wei 2012;Haiss and Sumegi 2008;Skipper and Kwon 2007;Kugler and Ofoghi 2005;Ward and Zurbruegg 2000).…”

“…The literature indicates insurance market activities contribute to economic growth to a great extent (see, inter alia, Chen et al 2012;Adams et al 2009;Kugler and Ofoghi 2005). However, it is possible that insurance market activities are also equally exaggerated by economic growth.…”

Impact of insurance sector activity on economic growth - A meta-analysis

“…Insurance sector activity may be measured by a number of indicators. As the most frequent ones are used insurance premium and indicators involved in insurance premium, (e.g Adams et al, 2009;Arena, 2008;Haiss, Sümegi, 2007;Ward, Zurbruegg, 2000). We therefore use the insurance premium, defi ned as the periodic payment made on an insurance policy, as the indicator for research synthesis.…”