TY - JOUR
T1 - Insurance activity and economic performance
T2 - Fresh evidence from asymmetric panel causality tests
AU - Hatemi-J, Abdulnasser
AU - Lee, Chi Chuan
AU - Lee, Chien Chiang
AU - Gupta, Rangan
N1 - Funding Information:
The authors are grateful to the editor and two anonymous referees for their helpful comments and suggestions. Chien-Chiang Lee is grateful to the Ministry of Science and Technology of Taiwan for financial support through grant (MOST 107-2410-H-110-005-MY2).
Publisher Copyright:
© 2018 John Wiley & Sons Ltd
PY - 2019
Y1 - 2019
N2 - Insurance plays a fundamental role in any modern economy, but the literature has not accounted for the potential asymmetric causal impacts from the dynamic interaction between the insurance market and economic performance. This paper aims to fill this gap by studying the causal relationship between several measures of insurance per capita and real GDP per capita in the G7 countries over the period 1980–2014 via asymmetric panel causality tests. Our results show that insurance market activity and economic performance exhibit bidirectional causalities, but their direction, intensity and significance are different due to distinct market situations. In general, insurance activity plays a passive role in economic performance, while economic performance has a significant role in insurance activity. These findings offer several useful insights for policy makers and researchers.
AB - Insurance plays a fundamental role in any modern economy, but the literature has not accounted for the potential asymmetric causal impacts from the dynamic interaction between the insurance market and economic performance. This paper aims to fill this gap by studying the causal relationship between several measures of insurance per capita and real GDP per capita in the G7 countries over the period 1980–2014 via asymmetric panel causality tests. Our results show that insurance market activity and economic performance exhibit bidirectional causalities, but their direction, intensity and significance are different due to distinct market situations. In general, insurance activity plays a passive role in economic performance, while economic performance has a significant role in insurance activity. These findings offer several useful insights for policy makers and researchers.
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U2 - 10.1111/infi.12333
DO - 10.1111/infi.12333
M3 - Article
AN - SCOPUS:85055507162
SN - 1367-0271
VL - 22
SP - 221
EP - 240
JO - International Finance
JF - International Finance
IS - 2
ER -