Impact Of Insurance On Economic Growth: The Case Of Republic Of Macedonia

Kjosevski, Jordan

doi:10.12955/ejbe.v4i0.154

Cited by 26 publications

(27 citation statements)

References 11 publications

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“…For instance, on the one hand, a study by [18] shows a positive impact on economic growth by non-life insurance activity as measured by penetration rate but finds a negative effect on economic growth as measured by density 1 . On the other hand, [11] found a positive and significant effect of aggregate and non-life insurance activity on economic growth, while the relationship was negative for life insurance activity. A recent study by [19] in six countries which differed in terms of economic development showed a significant positive relationship between insurance penetration and per capita income.…”

Section: Studies Of the Relationship Between Insurance Activity And Ementioning

confidence: 83%

The Effect of Insurance Activity on per Capita Income in the Southern Mediterranean: An Empirical Analysis Using Jordan as a Case Study

Mdanat¹,

Kasasbeh²,

Abushaikha³

2019

TEL

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This study examines the effects of insurance activity on per capita income in the case of a southern Mediterranean country (Jordan) over the period 1990-2017 using an Autoregressive Distributed Lag (ARDL) cointegration analysis to describe the dynamic long relationship between per capita income and insurance activity. It provides empirical evidence that insurance sector activity, measured by insurance investment, had a negative and significant effect on per capita income in Jordan during the studied period. However, it was also found that the negative effects of insurance sector activity on growth were limited by other economic policies which hamper per capita growth, such as inflation. The study recommends that more diversification of insurance products is necessary and that new markets need to be explored in order for insurance companies in southern Mediterranean countries to compete in international markets. Although there are several agreements between Mediterranean countries, negotiations on minimizing restrictions on insurance company activities could be done through easing procedures, reducing costs and enhancing future economic relations by exploring new economic relations or by building on current protocol and trade agreements. Furthermore, the study notes that policymakers in southern Mediterranean countries must aim for a well-developed insurance sector so that its activity can contribute to economic growth through mobilizing national saving to finance long-term investment projects. More attention should be paid throughout the region to insurance sector activities while conducting financial sector analysis and macroeconomic policy design.

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Section: Studies Of the Relationship Between Insurance Activity And Ementioning

confidence: 83%

The Effect of Insurance Activity on per Capita Income in the Southern Mediterranean: An Empirical Analysis Using Jordan as a Case Study

Mdanat¹,

Kasasbeh²,

Abushaikha³

2019

TEL

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“…Assessing the distance of the Ukrainian insurance market from other markets. 6. Determination of the level of openness of the insurance market of Ukraine on the basis of the law of gravity.…”

Section: Main Results Of Investigationmentioning

confidence: 99%

“…Thus, foreign scholars who were focused on the study of the openness of the financial market are Zhang, Z. [11], Xiangsheng Dou [10], Edwards S. [2], Quinn D., Inclan C. [6]. The authors whose works relate to the definition of the relationship between openness and the growth of the economy are Arena M. [1], Haiss P., Sumegi K. [3], Kjosevski J.…”

Section: Literature Reviewmentioning

confidence: 99%

Openness of the insurance market for foreign entities: methodology and experience of Ukraine

Vieriezubova¹,

Levchenko²

2017

FMIR

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The article is devoted to the development of methodical tools for determining the level of openness of the insurance market in Ukraine. The proposed level of openness of the insurance market of Ukraine should be considered as an opportunity (potential) for domestic insurers to interact effectively with foreign investors and financial intermediaries. It has been established that the mathematical tool for realizing the task should be a gravity modeling, which, taking into account the inflow and outflow of the characteristics of the openness of the insurance market of Ukraine, allows us to determine the degree of its remoteness from the insurance markets of Europe and the World. It is proved that the openness of the insurance market of Ukraine serves not only as an indicator of the level of readiness of the interaction of domestic financial intermediaries with foreign entities, but also fully characterizes the infrastructural level of the Ukrainian insurance market.

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“…They argued that there was a positive impact of life insurance in GDP growth for the first group of countries, for the second group they found a greater impact on non-life insurance. Kjosevski, J (2011) discussed the impact of insurance on economic growth by using three variables: life insurance, non-life insurance, and full insurance coverage. He used data from the period of 1995-2010 of the Republic of Macedonia, using OLS technique, followed by a variability analysis to identify the effects of each variable.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effects of the Insurance Market in the Development of Western Balkans Countries, with Special Emphasis on Kosovo

Kukaj¹,

Morina²,

Misiri³

2019

EJSD

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The purpose of this research is to see whether the insurance influences the economic development of Western Balkan countries. Currently, insurance comprises an economic sector that includes all activities of conception, production and trading of this type of service that is of public interest but generally carried out by private law entities. For the specification of the econometric model in this research, we are based on the secondary data published in the official reports of the World Bank, the Central Bank, and the statistical agencies of some countries. To measure empirical results, there are used these statistical tests: fixed effects model, Hausman Taylor Regression, generalized method of the moment (GMM), and GLS regression. Based on the empirical results, we can conclude that life insurance and non-life insurance have a significant connection and positively impact the economic growth of these countries. Other variables that have shown a positive result in economic growth are: GDP per capita, Exports, whereas variables that negatively impact on economic growth are inflation and government spending.The empirical results of this document may recommend that relevant institutions implement institutional improvements that contribute to strengthening competition, advancing risk management techniques, and so on. In conclusion, we can say that future researches can be done as events, life insurance or non-life insurance impact on economic growth in Kosovo and in the countries of the region. The study is carried out with secondary data, and all empirical analyses are original. Through the results of this study we intend to offer more empirical evidence for our country and countries in the region recommending that relevant institutions improve the functioning of the financial sector and especially the insurances part because it is the factor that affects the economic growth. Key words: Economic growth, life insurance, non-life insurance, Kosovo.JEL Classification: C23, E31, G22, O11

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Impact Of Insurance On Economic Growth: The Case Of Republic Of Macedonia

Cited by 26 publications

References 11 publications

The Effect of Insurance Activity on per Capita Income in the Southern Mediterranean: An Empirical Analysis Using Jordan as a Case Study

The Effect of Insurance Activity on per Capita Income in the Southern Mediterranean: An Empirical Analysis Using Jordan as a Case Study

Openness of the insurance market for foreign entities: methodology and experience of Ukraine

The Effects of the Insurance Market in the Development of Western Balkans Countries, with Special Emphasis on Kosovo

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