The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member States
Insurance market activity, both as a financial intermediary and a provider of risk transfer and indemnification, may contribute to economic growth by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in in...
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| Format: | Article |
| Language: | English |
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Sciendo
2021-12-01
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| Series: | ECONOMICS |
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| Online Access: | https://doi.org/10.2478/eoik-2021-0024 |
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| author | Kondovski Hristo |
| author_facet | Kondovski Hristo |
| author_sort | Kondovski Hristo |
| collection | DOAJ |
| description | Insurance market activity, both as a financial intermediary and a provider of risk transfer and indemnification, may contribute to economic growth by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in insurance market activity, particularly in emerging markets given the process of liberalization and financial integration, which raises questions about its impact on economic growth.The aim of this paper is to examine relationship between insurance sector development and economic in 11 new EU member states from CentralandEasternEurope, using annual data fortheperiod 1999-2018. We apply dynamic and fully modified ordinary least squares to estimate the relationship between the variables. The results of our study indicate there are a positive and a significant relationship between insurance, measured through penetration, and economic growth Thus, functions of insurance companies - providing means of risk management and performing mobilization and allocation of resources - are important for economic growth and is in line with previous studies and with our hypothesis These results could be useful for regional governments that seek to improve economic growth as they suggest the need for implementation of stimulative policies for the development of insurance industry |
| first_indexed | 2024-04-12T12:32:02Z |
| format | Article |
| id | doaj.art-65f23efda6c24f8d91895aae1963fb30 |
| institution | Directory Open Access Journal |
| issn | 2303-5013 |
| language | English |
| last_indexed | 2024-04-12T12:32:02Z |
| publishDate | 2021-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | ECONOMICS |
| spelling | doaj.art-65f23efda6c24f8d91895aae1963fb302022-12-22T03:33:00ZengSciendoECONOMICS2303-50132021-12-019210912210.2478/eoik-2021-0024The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member StatesKondovski Hristo0Executive Director of SN Insurance Broker AD Bitola, Northern MacedoniaInsurance market activity, both as a financial intermediary and a provider of risk transfer and indemnification, may contribute to economic growth by allowing different risks to be managed more efficiently and by mobilizing domestic savings. During the last decade, there has been faster growth in insurance market activity, particularly in emerging markets given the process of liberalization and financial integration, which raises questions about its impact on economic growth.The aim of this paper is to examine relationship between insurance sector development and economic in 11 new EU member states from CentralandEasternEurope, using annual data fortheperiod 1999-2018. We apply dynamic and fully modified ordinary least squares to estimate the relationship between the variables. The results of our study indicate there are a positive and a significant relationship between insurance, measured through penetration, and economic growth Thus, functions of insurance companies - providing means of risk management and performing mobilization and allocation of resources - are important for economic growth and is in line with previous studies and with our hypothesis These results could be useful for regional governments that seek to improve economic growth as they suggest the need for implementation of stimulative policies for the development of insurance industryhttps://doi.org/10.2478/eoik-2021-0024insuranceeconomic growth11 new eu member statesc10g22o40 |
| spellingShingle | Kondovski Hristo The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member States ECONOMICS insurance economic growth 11 new eu member states c10 g22 o40 |
| title | The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member States |
| title_full | The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member States |
| title_fullStr | The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member States |
| title_full_unstemmed | The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member States |
| title_short | The Innovative Impact of Insurance for Economic Growth: The Evidence from New EU Member States |
| title_sort | innovative impact of insurance for economic growth the evidence from new eu member states |
| topic | insurance economic growth 11 new eu member states c10 g22 o40 |
| url | https://doi.org/10.2478/eoik-2021-0024 |
| work_keys_str_mv | AT kondovskihristo theinnovativeimpactofinsuranceforeconomicgrowththeevidencefromneweumemberstates AT kondovskihristo innovativeimpactofinsuranceforeconomicgrowththeevidencefromneweumemberstates |