Insurance market density and economic growth in Eurozone countries: the granger causality approach
Abstract Background This study examines the relationship between insurance market density (IMD) and economic growth. Methods We employed Granger causality technique in 19 Eurozone countries for the period 1980-2014. We use three different indicators of IMD, namely life insurance density, non-life in...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2017-09-01
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| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | http://link.springer.com/article/10.1186/s40854-017-0065-x |
| _version_ | 1818991601017421824 |
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| author | Rudra P. Pradhan Saurav Dash Rana Pratap Maradana Manju Jayakumar Kunal Gaurav |
| author_facet | Rudra P. Pradhan Saurav Dash Rana Pratap Maradana Manju Jayakumar Kunal Gaurav |
| author_sort | Rudra P. Pradhan |
| collection | DOAJ |
| description | Abstract Background This study examines the relationship between insurance market density (IMD) and economic growth. Methods We employed Granger causality technique in 19 Eurozone countries for the period 1980-2014. We use three different indicators of IMD, namely life insurance density, non-life insurance density, and total insurance density. We particularly emphasize on whether Granger causality runs between IMD and economic growth both ways, one way, or not at all. Results Our empirical result recognizes the presence of both unidirectional and bidirectional causality between insurance market density and economic growth. However, these results are mostly non-uniform across Eurozone countries. Conclusions This study holds important policy implications- economic policies should recognize the differences in the insurance market density and economic growth in order to maintain sustainable economic growth in the Eurozone. |
| first_indexed | 2024-12-20T20:12:51Z |
| format | Article |
| id | doaj.art-edf1ed1b9cd44fcc9580e7a43c8ac195 |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-12-20T20:12:51Z |
| publishDate | 2017-09-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-edf1ed1b9cd44fcc9580e7a43c8ac1952022-12-21T19:27:47ZengSpringerOpenFinancial Innovation2199-47302017-09-013112410.1186/s40854-017-0065-xInsurance market density and economic growth in Eurozone countries: the granger causality approachRudra P. Pradhan0Saurav Dash1Rana Pratap Maradana2Manju Jayakumar3Kunal Gaurav4Vinod Gupta School of Management, Indian Institute of TechnologyVinod Gupta School of Management, Indian Institute of TechnologyKL UniversityVinod Gupta School of Management, Indian Institute of TechnologyVinod Gupta School of Management, Indian Institute of TechnologyAbstract Background This study examines the relationship between insurance market density (IMD) and economic growth. Methods We employed Granger causality technique in 19 Eurozone countries for the period 1980-2014. We use three different indicators of IMD, namely life insurance density, non-life insurance density, and total insurance density. We particularly emphasize on whether Granger causality runs between IMD and economic growth both ways, one way, or not at all. Results Our empirical result recognizes the presence of both unidirectional and bidirectional causality between insurance market density and economic growth. However, these results are mostly non-uniform across Eurozone countries. Conclusions This study holds important policy implications- economic policies should recognize the differences in the insurance market density and economic growth in order to maintain sustainable economic growth in the Eurozone.http://link.springer.com/article/10.1186/s40854-017-0065-xInsurance market densityEconomic growthGranger causalityEurozone countries |
| spellingShingle | Rudra P. Pradhan Saurav Dash Rana Pratap Maradana Manju Jayakumar Kunal Gaurav Insurance market density and economic growth in Eurozone countries: the granger causality approach Financial Innovation Insurance market density Economic growth Granger causality Eurozone countries |
| title | Insurance market density and economic growth in Eurozone countries: the granger causality approach |
| title_full | Insurance market density and economic growth in Eurozone countries: the granger causality approach |
| title_fullStr | Insurance market density and economic growth in Eurozone countries: the granger causality approach |
| title_full_unstemmed | Insurance market density and economic growth in Eurozone countries: the granger causality approach |
| title_short | Insurance market density and economic growth in Eurozone countries: the granger causality approach |
| title_sort | insurance market density and economic growth in eurozone countries the granger causality approach |
| topic | Insurance market density Economic growth Granger causality Eurozone countries |
| url | http://link.springer.com/article/10.1186/s40854-017-0065-x |
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