The impact of the insurance market on economic growth: evidence from Türkiye

Publisher Summary This chapter discusses the financial development and economic growth in underdeveloped countries. An observed characteristic of the process of economic development over time, in a market-oriented economy using the price mechanism to allocate resources, is an increase in the number and variety of financial institutions and a substantial rise in the proportion not only of money but also of the total of all financial assets relative to GNP and to tangible wealth. Typical statements indicate that the financial system somehow accommodates—or, to the extent that it malfunctions, it restricts—growth of real per capita output. Such an approach places emphasis on the demand side for financial services; as the economy grows it generates additional and new demands for these services, which bring about a supply response in the growth of the financial system. In this view, the lack of financial institutions in underdeveloped countries is simply an indication of the lack of demand for their services.

Close relationships research has examined committed couples (e.g., dating relationships, marriages) using intensive methods that plot relationship development over time. But a substantial proportion of people's real-life sexual experiences take place (a) before committed relationships become "official" and (b) in short-term relationships; methods that document the time course of relationships have rarely been applied to these contexts. We adapted a classic relationship trajectory-plotting technique to generate the first empirical comparisons between the features of people's real-life short-term and long-term relationships across their entire timespan. Five studies compared long-term and short-term relationships in terms of the timing of relationship milestones (e.g., flirting, first sexual intercourse) and the occurrence/intensity of important relationship experiences (e.g., romantic interest, strong sexual desire, attachment). As romantic interest was rising and partners were becoming acquainted, long-term and short-term relationships were indistinguishable. Eventually, romantic interest in short-term relationships plateaued and declined while romantic interest in long-term relationships continued to rise, ultimately reaching a higher peak. As relationships progressed, participants evidenced more features characteristic of the attachment-behavioral system (e.g., attachment, caregiving) in long-term than short-term relationships but similar levels of other features (e.g., sexual desire, self-promotion, intrasexual competition). These data inform a new synthesis of close relationships and evolutionary psychological perspectives called the Relationship Coordination and Strategic Timing (ReCAST) model. ReCAST depicts short-term and long-term relationships as partially overlapping trajectories (rather than relationships initiated with distinct strategies) that differ in their progression along a normative relationship development sequence. (PsycINFO Database Record

The synergistic effect of insurance and banking sector activities on economic growth in Africa

The impact of stock market on economic growth has always been a topic of scholarly inquiry. To study this relationship various methods are used, Autoregressive Distributed Lag is one of those methods which is employed in this study to investigate the impact of the stock market on the economic growth in the context of Pakistan. To investigate this relationship, independent variable is stock market performance and dependent variable is economic growth. Market capitalization is used as an indicator to measure stock market performance. The GDP is used as a proxy to measure economic growth of the country. The Data is collected from authentic sources of World Bank Indicators. By analyzing these variable study aims to explain the short-term and long-term relationship between these variables. The conclusions of this study provide policy implications at national level and help investors in devising investment strategies. This study provides new insights on the finance-growth nexus and contributes to already existing body of knowledge. By unraveling these dynamics, this study is expected to provide worthy insights into the decision making process for various stakeholders, investing bodies, policymakers. Findings depicts positive short and long term association between stock market performance and economic growth that implies establishing the healthy stock market that in effect enhances economic growth.

This study aims to: (1) To analyze the long-term and short-term relationship between economic growth, government spending and human development index in districts/cities in Jambi Province. (2) To analyze the causal relationship between economic growth, government spending and human development index in regencies/cities in Jambi Province. The data used is panel data from 11 districts/cities in Jambi Province during the period 2010-2020. Analysis of the data used is the Panel Vector Error Correction Model (PVECM) and the Granger panel causality test. The results of the study conclude that: (1) There is a positive long-term relationship between the human development index, government spending on education and health on economic growth. In the short term, there is a negative relationship between economic growth, spending on education and health on the human development index. Then there is a positive relationship between government education and health and economic growth. (2) Causality test Granger's results state that there is a two-way causality between economic growth and the human development index, then between government competition and HDI. Furthermore, there is a one-way causality (unidirectional causality) between the government contest and economic growth.

Social progressions such as the feminist movement and technological advances may have influenced the way young adults perceive romantic relationships. Although long-term relationships are traditionally viewed favorably in society, short-term relationships are becoming more popular in recent years. It’s important to understand the common perceptions of romance among young adults because it affects their partner choices and expectations. While experts can define the concepts of long-term and short-term relationships, we believe the most reliable method is to ask young adults directly. Therefore, we collected data from 229 self-reported British nationals aged between 18 and 33 (M = 19.66; SD = 2.72) to understand their perceptions of long-term and short-term romantic relationships. We asked them to write down the words or phrases that come to mind when they think of these concepts. Using the structural approach of the theory of social representation, we analyzed the values and norms of young British adults regarding these concepts. Based on our study, we observed four important things. Firstly, short-term relationships (STRs) are associated with “fun”, “excitement”, and “passion”, while long-term relationships (LTRs) are associated with “love”, “commitment”, “trust”, and “loyalty”. Secondly, while sex is important in romantic relationships, it’s only a peripheral component of STRs and not a significant factor in LTRs. Thirdly, both those in relationships and single individuals agree that “fling” and “passion” are primary aspects of STRs, but those in relationships tend to use the term “fun,“ while single individuals use “exciting” to describe STRs. Lastly, “love”, “trust”, and “commitment” are essential elements in LTRs for both single individuals and those in relationship. However, individuals in relationships also value loyalty as a critical aspect of romantic relationships.

The main purpose of this study is to investigate the relationship between human development index, urbanization, economic growth and ecological footprint in MINT countries (Mexico, Indonesia, Nigeria and Turkiye) for the years 2003-2022. First of all, the cointegration relationship between human development index, urbanization, economic growth and ecological footprint was examined with Gengenbach, Urbain and Westerlund (2016) panel cointegration. As a result of the cointegration analysis, it was concluded that the variables were cointegrated. The long-term relationship was estimated by the DOLSMG method. According to the DOLSMG estimator, it was determined that a 1% increase in the human development index in MINT countries reduced the ecological footprint by 1.89%, a 1% increase in urbanization increased the ecological footprint by 0.22%, and a 1% increase in economic growth increased the ecological footprint insignificantly. Secondly, the relationship between human development index, urbanization, economic growth and ecological footprint was examined with Dumitrescu and Hurlin (2012) panel causality analysis. According to the findings, there is a bidirectional causality relationship between ecological footprint and urbanization in MINT countries. Additionally, the findings of the study show that there is a unidirectional causality relationship from ecological footprint to human development index and a unidirectional causality relationship from economic growth to ecological footprint.

The insurance sector plays a crucial role in overall economic development. A studies published in the world literature have not finally confirmed the influence of the development of the insurance industry on economic growth; however, we may assume that the influence is positive. Countries in distress with regard to other activities such as fiscal or monetary policy should influence the overall development of the insurance sector. The paper is aimed at presenting the results of an assessment of the development of the insurance sector in chosen European countries such as Portugal, Italy, Greece, and Spain over the financial crisis, especially from the point of view of product innovation. We have chosen the countries stated owing to the economic situation against a background of the European Union. Those countries have faced budget deficits and were badly hit by the financial crisis of 2007. That is why it is interesting to study the progress of the financial sector, specifically insurance. The insurance market in a specific country is assessed by using taxonomy methods, in particular, two main measures: the distance measure and the similarity measure. The markets are described by a set of features divided into five groups: market structure, technical sphere, finance and investment, effectiveness, and product. The authors have calculated measures at two points in time: 1997 and 2013. The comparison between the level of taxonomic measures in those two years allowed the authors to draw the main conclusion that the financial crisis has stopped the speed of development of markets and has had a significant influence on other spheres as well. In countries such as Greece and Portugal, progress was even slower than that in post-Soviet countries such as Poland. External conditions have not imposed structural changes within chosen insurance markets. However, the general environment was conducive to supporting the expansion of the insurance markets only up to 2007. The influence of the crisis is very visible. The final conclusion is that the sectors were not innovative, mainly with regard to products. Product innovations give the insurer an opportunity to play an important role in contributing to sustainable development on a macroeconomic scale, or even more so—on a global scale. We are convinced that at the age of innovation, the insurance sector cannot remain insensitive to the need for innovation, not only in the area of insurance operation of companies, but also with regard to products. Innovations within the insurance sector become even more important in terms of building competitive strengths of an insurer. An innovative offer can maximize the insurer’s revenue and profits.

ABSTRACT: This study investigates the relationship between the insurance sector's development and Nigeria's economic growth from 2000 to 2023. It focuses on key economic indicators like GDP, insurance premium, claims, investments, and inflation rate, seeking to understand how the growth of the insurance industry impacts the country's overall economic performance. The study employs a quantitative research approach, utilizing secondary data from the Central Bank of Nigeria, National Bureau of Statistics, and the National Insurance Commission. Key variables include Gross Domestic Product (GDP), Total Insurance Premium, Total Insurance Claim, Total Insurance Investment, and Inflation Rate. Statistical techniques such as descriptive statistics, correlation analysis, unit root tests, co-integration analysis, and Error Correction Models (ECM) are used to analyze the relationships and long-term dynamics between these variables, covering the period from 2000 to 2023. The study reveals a significant positive relationship between Total Insurance Premium and Investment with GDP growth, indicating that the insurance sector's development promotes economic growth by mobilizing savings and channeling funds into productive investments. However, there is no significant relationship between Total Insurance Claims and GDP growth, suggesting further investigation is needed. A negative correlation between Inflation Rate and GDP growth emphasizes the detrimental effects of inflation on economic performance. The research also identifies the need for more robust mechanisms to enhance insurance sector operations, improve data collection, and address inflation's impact on economic stability. Policymakers should implement measures to support the growth of the insurance sector, enhance regulatory frameworks, and foster innovation in insurance products. Stabilizing inflation should be prioritized through sound monetary policies to ensure sustained economic growth. Further research into the role of insurance claims in economic development is recommended. Strengthening data collection processes will improve decision-making and foster evidence-based policies to leverage the insurance sector for long-term economic stability and growth in Nigeria.

The paper empirically examines the dynamic relationship between financial development and economic growth in South Africa in terms of financial intermediaries and financial markets based structure. A time series analysis using the VAR Model provided evidence for the dynamic relationship. The paper provides empirical evidence on the causal impact of the financial market on economic growth in South African. The results suggest that financial intermediaries and financial markets have different impacts on economic growth given their different roles in the economy.  In particular, there is bidirectional causality between stock market and economic growth. Also, a unidirectional causality from the bond market to economic growth was established. However, as for financial intermediaries, causality runs from economic growth to financial intermediaries. This suggests the importance of the financial market in economic development in South Africa.  Key words: Financial markets, financial intermediaries, economic growth, vector auto-regression, Granger causality.

This paper examines the relationship between insurance market development and economic growth in EU member states in the period 1998-2018. Our results indicate that there is no causality between premium per capita and GDP per capita growth in the case of 11 out of the 23 analysed countries, including four countries classified as emerging markets. However, in the case of panel data covering all the countries, we determined a two-way causality between insurance market development and economic growth. In the short run, premium per capita has a positive and significant impact on the economic growth as proven in the data panel and in the case of individual countries, except in the case of Ireland and Luxembourg, where the applied model shows only error-correction coefficient values. Besides, our results indicate that premium per capita has a significant positive effect on economic growth in the long run in the case of Belgium, Cyprus, Bulgaria, Romania and Slovenia, i.e., insurance premium is a key determinant of long-term economic growth. The results show a statistically significant long-term positive relationship between premium per capita and GDP growth per capita in the case of a panel analysis of all the observed countries and countries classified as emerging markets. On the other hand, the panel data analysis of the countries classified in the category of developed markets showed a long-term positive relationship, but not a statistically significant one. Since that results indicate that the insurance market development could contribute to ensuring long-term economic stability and growth of observed countries, special attention needs to be paid to the strategy of insurance market development in a changing business environment.

This study aims to investigate the causal relationship between financial development (FD) and economic growth (EG) from 1990 to 2022. 45 developing countries and the approach recommended by Canning and Pedroni (2008) has been applied to determine this link. Based on the result of Unit Roots tests, the variables are first-order integrated. The cointegration connection indicates that, despite ongoing external shocks, the time series are linked in a long-term equilibrium. For the whole panel, the causality results show a long-run, unidirectional causal relationship. The long-run causal link from EG to FD is not supported by panel causality data. Examining group averages, there is no long-term causal relationship from FD to EG or EG to FD. The results demonstrate the validity of the supply-leading viewpoint and demonstrate that financial market reforms, financial market liberalization policies, and improved financial intermediation services all have a favorable impact on EG in the economies under discussion.

This study examines the long-term relationship and causality direction between tourism revenues and economic growth in developing countries. In this context, annual data from eight countries, namely Brazil, Cuba, Georgia, Malaysia, Mexico, South Africa, Thailand and Turkey, between the years 2000-2023 were used. Within the scope of the analysis, Pedroni and Kao cointegration tests were applied to determine the long-term cointegration relationship. In addition, Dumitrescu and Hurlin panel causality test was used to determine the causality direction between the variables. The findings show that there is a long-term cointegration relationship between tourism revenues and economic growth in developing countries. The causality analysis results reveal that there is a unidirectional causality relationship from tourism revenues to economic growth. This finding shows that the tourism sector makes a significant contribution to the economic growth of the examined countries and that tourism should be considered as a strategic sector in terms of sustainable development policies. The study emphasizes the role of tourism on economic growth in developing countries and provides important information to policy makers and investors. The results obtained show that incentives for the tourism sector can support economic growth and draw attention to the necessity of sustainable tourism policies. In this context, supporting tourism with infrastructure investments, promotional activities and sustainable development strategies stands out as a critical factor in terms of economic growth.

Purpose– The purpose of this paper is to examine the causal relationship between insurance penetration and economic growth in eight selected African countries.Design/methodology/approach– The auto-regressive distributed lags bounds approach to cointegration is employed on annual time-series data from 1990 to 2010 to test the causal relationship between insurance and economic growth in Algeria, Gabon, Kenya, Madagascar, Mauritius, Morocco, Nigeria and South Africa. The ratio of life and non-life insurance premiums to gross domestic product are employed as proxies for insurance market development.Findings– The results of the bound test shows a long-run relationship between insurance market activities and economic growth for Kenya, Mauritius, Morocco, Nigeria and South Africa. Causality analysis within the vector error correction model indicates a uni-directional causality from insurance market development to economic growth except for Morocco where there is evidence of a bi-directional causality. Causality within the vector autoregressive framework also provides evidence of a uni-directional causality for Algeria and Madagascar to support the “supply-leading” hypothesis while mixed causality was found for Gabon.Practical implications– This findings provides policy direction for governments and regulatory authorities for developing insurance market in the sample countries.Originality/value– This is the first study to examine the finance-growth relationship from the perspective of insurance markets in a cross-section of African countries.

This study aims to analyze the effect of exports and Islamic bank financing on the economic growth of North Sumatra Province using monthly time series data from 2013 to 2022. The research employs a quantitative approach, with data processed using EViews 12 and analyzed through the Vector Autoregression (VAR) and Vector Error Correction Model (VECM) methods to examine both short-term and long-term relationships among variables. The findings indicate the existence of long-term equilibrium among exports, Islamic bank financing, and economic growth. However, in the short term, neither exports nor Islamic bank financing have a statistically significant effect on economic growth, although a unidirectional causality is observed from economic growth to both variables. The impulse response analysis reveals fluctuations in both variables’ reactions to economic growth shocks during the early periods. In the long run, exports show a more dominant and significant influence on economic growth compared to Islamic bank financing. These results highlight the need for strategic efforts to enhance export performance and optimize the role of Islamic banking in supporting regional economic growth.