Abstract
This study analyzed both the long and short run relationship between insurance development and economic growth in Nigeria over the period 1986 to 2010. Using error correction model (ECM), the study finds that insurance development cointegrated with economic growth in Nigeria. That is there is long run relationship between insurance development and economic growth in Nigeria. The results also shows that physical capital and interest rate both at contemporary and one lagged value has significant positive effect on economic growth in Nigeria while physical capital and inflation has negative long run relationship with economic growth. The results of this study generally indicate statistically significance contribution of insurance to economic growth in Nigeria. Key words: Economic growth, insurance, Error Correction Model (ECM).
Highlights
The role of insurance sector in mitigating sudden and devastating occurrences thereby stimulating economic growth cannot be over emphasised
The link between insurance and economic growth has been examined in Nigeria
The results show that insurance development and economic growth are cointegrated
Summary
The role of insurance sector in mitigating sudden and devastating occurrences thereby stimulating economic growth cannot be over emphasised. Both in developed and developing countries, insurance sector contributes to economic growth both sectorally and geographically. No consensus has emerged on the impact of insurance development and economic growth. Studies such as Arena (2006), Haiss and Sumegi (2008), Mojekwu et al (2011), and Pen-Fen et al (2011) found that insurance had positive impact on economic growth. Study by Webb et al (2005) showed that insurance had no significant positive effect on economic growth
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
