Do Muslim economies need insurance to grow? Answer from rigorous empirical evidence

Mehmood, Bilal; Shahbaz, Muhammad; Jiao, Zhilun

doi:10.1016/j.qref.2021.05.006

Cited by 3 publications

(4 citation statements)

References 38 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This indicates that life insurance market development will have a faster impact on economic growth than nonlife insurance in the long run. Overall, our findings are consistent with the studies of Mehmood et al (2021), Lee and Lee (2020), Ruiz (2018), Lee et al (2016) and Gonzalez et al (2022) regarding the impacts of nonlife and life insurance on economic development.…”

Section: Resultssupporting

confidence: 92%

“…Accompanied by the expansion of the banking sector and the financial market, the insurance sector has also progressively affirmed its critical role in stimulating the stable growth of the economy. Various prior empirical studies confirm the positive influences of insurance sector development on economic growth in developed countries (Haiss and Sümegi, 2008;Chang et al, 2014;Liu et al, 2016;Hatemi et al, 2018;Apergis and Poufinas, 2020), developing countries (Alhassana and Fiador, 2014;Pradhan et al, 2016Pradhan et al, , 2017Mehmood et al, 2021;Lee and Lee, 2020) and cross-countries (Ward and Zurbruegg, 2000;Arena, 2008;Ruiz, 2018;Lee et al, 2016;Lee et al, 2017;Gonzalez et al, 2022). An efficient and competitive insurance market could facilitate economic growth and reduce the government's burden on pension payments and health care system improvement.…”

Section: Introductionmentioning

confidence: 92%

See 1 more Smart Citation

Can insurance ensure economic growth in an emerging economy? Fresh evidence from a non-linear ARDL approach

Tran,

Huynh

2023

JFEP

View full text Add to dashboard Cite

Purpose This study aims to explore the nexus between insurance penetration and economic development in Vietnam, one of the fastest-growing economies over the past two decades. Design/methodology/approach This study uses an updated data set of the insurance sector in Vietnam from 1996 to 2020. The autoregressive lagging distribution and cointegrating non-linear autoregressive lagging distribution (NARDL) models are used to explore the nexus between the insurance market development and economic growth. Findings This study confirms the unidirectional causality and positive impacts of insurance market development on economic growth both in the short and long term, supporting the “supply-leading” hypothesis. Nonlife insurance has more significant but slower impacts on contributing to economic development in the long run. From the NARDL approach, this study also discloses the asymmetric relationship between the insurance industry and economic growth. Aggregate and life insurance display short- and long-term asymmetric impacts, whereas nonlife insurance shows long-term asymmetry. Originality/value To the best of the authors’ knowledge, this is the first study to examine the hidden asymmetries of the insurance-growth nexus in Vietnam from non-linear models. Notwithstanding the theoretical contributions to the prior literature, several practical implications are proposed for insurance businesses, policymakers and investors.

show abstract

Section: Resultssupporting

confidence: 92%

Section: Introductionmentioning

confidence: 92%

Can insurance ensure economic growth in an emerging economy? Fresh evidence from a non-linear ARDL approach

Tran,

Huynh

2023

JFEP

View full text Add to dashboard Cite

show abstract

“…Considering that in small samples and high steadiness, framework GMM might perform better, as the assessment from distinction GMM might have low accuracy, the last option is utilized additionally to approve our discoveries [49]. Mehmood et al (2021) explored how random coefficient estimates might be superior to GMM and Fixed Effects, arguing that common fixed coefficients gave insufficient approximation to the genuine model. This was due to their presupposition of intercepts' homogeneity across nations and time periods [50].…”

Section: Map Of the Western Balkansmentioning

confidence: 99%

“…Mehmood et al (2021) explored how random coefficient estimates might be superior to GMM and Fixed Effects, arguing that common fixed coefficients gave insufficient approximation to the genuine model. This was due to their presupposition of intercepts' homogeneity across nations and time periods [50]. It was critical that the nation specific variables and the other independent variables in the equation were mean independents of the error term in order to have consistent estimates of Fixed Effects under OLS.…”

Section: Map Of the Western Balkansmentioning

confidence: 99%

The Impact of Macroeconomic Factors on Non-performing Loans in the Western Balkans

Gashi

Tafa²,

Bajrami³

2022

Emerg Sci J

View full text Add to dashboard Cite

This paper analyzes the relationship of macroeconomic factors to the level of non-performing loans (NPLs) using the econometric models GMM, the Fixed Effect model, and the Random Effect model. This study aims to identify macroeconomic factors at the level of non-performing loans in the Western Balkans, measure their impact on non-performing loans, and thus fill the gap that exists between macroeconomic factors (consisting of economic growth) and those with more impact on NPLs. The methodology used to carry out this research was desk research. We used World Bank data from 2000–2019, processed with STATA software. Results show that macroeconomic factors have an impact on non-performing loans. It also proves that even when interacting with other variables, the level of bad debt has not been completely eliminated, despite economic growth in many countries. Third, throughout the study period, fixed effects estimates show that variables are not significant in a static context. According to the findings, the annual rates of GDP growth, final government consumption, the real interest rate, gross domestic savings, and the unemployment rate all have a favorable impact on NPLs. This research contributes to a deeper understanding of the relationship between macroeconomic factors and non-performing loans in the Western Balkans. Based on this, to help reduce loan risk and bad debt by the proper criteria, we propose a series of policy implications. These implications aim to improve the efficiency of banks in particular and the banking system as a whole. Doi: 10.28991/ESJ-2022-06-05-08 Full Text: PDF

show abstract

Does subjective life expectancy matter in purchasing life insurance among middle-aged and older adult? Evidence from China

Chen,

Guo,

et al. 2024

Front. Public Health

View full text Add to dashboard Cite

Population-wide increase in life expectancy is a source of aggregate longevity risk. Life insurance is a natural instrument to manage the risk. Previous studies used chronological age to examine the relationship between aging and life insurance purchase, which ignored the impact of subjective life expectancy-the real perception of remaining time. Therefore, this study aims to fill the lack in this area and to explore in depth the relationship between subjective life expectancy and purchasing life insurance among middle-aged and older adult at micro perspective. This paper utilizes data from the China Health and Retirement Longitudinal Study (CHARLS) over a period of 4 years to construct both Probit and Tobit models. The findings reveal that subjective life expectancy positively affects the likelihood of participation and the extent of life insurance among the middle-aged and older adult population in China. IV model estimation results show good robustness of the results. Meanwhile, there is also heterogeneity in the effect with respect to gender, hukou, education and wealth. The findings provide new perspective to explain the subjective motivation of purchasing life insurance in China.

show abstract

Do Muslim economies need insurance to grow? Answer from rigorous empirical evidence

Cited by 3 publications

References 38 publications

Can insurance ensure economic growth in an emerging economy? Fresh evidence from a non-linear ARDL approach

Can insurance ensure economic growth in an emerging economy? Fresh evidence from a non-linear ARDL approach

The Impact of Macroeconomic Factors on Non-performing Loans in the Western Balkans

Does subjective life expectancy matter in purchasing life insurance among middle-aged and older adult? Evidence from China

Contact Info

Product

Resources

About