Development of financial market activities and economic growth: A cross-country evidence

Q3 Economics, Econometrics and Finance

Applied Econometrics Pub Date : 2020-01-01 DOI:10.22394/1993-7601-2020-60-26-47

K. Chakraborty

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引用次数: 1

Abstract

This paper examines the relationship between insurance market development and economic growth and various conditions that affect the insurance-growth nexus. The conditions tested are degree of financial development, banking activity, and demographic profile of a country. The empirical study uses cross country panel data from 90 countries for the period 1995 to 2015 and applies Hausman–Taylor random effect model. The main findings confirm a positive non-linear relationship between insurance market development and economic growth. The study also finds the impact of banking and stock market developments reduce the positive effect of insurance market activities on economic growth implying these activities are substitutes for insurance market promoting economic growth. Two major contributions for this study are: (i) it tests the hypothesis that the impact of insurance development on economic growth is non-linear, which implies at a higher level of economic development increased insurance spending would reduce economic growth; and (ii) it tests the hypothesis whether banking development and stock market activities are substitute or complement to insurance market development in the economic growth process.

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金融市场活动的发展与经济增长:一个跨国的证据

本文考察了保险市场发展与经济增长之间的关系，以及影响保险-增长关系的各种条件。测试的条件是一个国家的金融发展程度、银行活动和人口结构。实证研究采用1995 - 2015年90个国家的跨国面板数据，采用Hausman-Taylor随机效应模型。主要研究结果证实了保险市场发展与经济增长之间存在正非线性关系。研究还发现，银行和股票市场发展的影响降低了保险市场活动对经济增长的积极作用，这意味着这些活动是保险市场促进经济增长的替代品。本研究的两个主要贡献是:(i)检验了保险发展对经济增长的影响是非线性的假设，这意味着在较高的经济发展水平下，增加的保险支出会降低经济增长;(二)检验了在经济增长过程中，银行发展和股票市场活动对保险市场发展是替代还是补充的假设。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Applied Econometrics Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

0.70

自引率

0.00%

发文量

期刊介绍： The Journal of Applied Econometrics is an international journal published bi-monthly, plus 1 additional issue (total 7 issues). It aims to publish articles of high quality dealing with the application of existing as well as new econometric techniques to a wide variety of problems in economics and related subjects, covering topics in measurement, estimation, testing, forecasting, and policy analysis. The emphasis is on the careful and rigorous application of econometric techniques and the appropriate interpretation of the results. The economic content of the articles is stressed. A special feature of the Journal is its emphasis on the replicability of results by other researchers. To achieve this aim, authors are expected to make available a complete set of the data used as well as any specialised computer programs employed through a readily accessible medium, preferably in a machine-readable form. The use of microcomputers in applied research and transferability of data is emphasised. The Journal also features occasional sections of short papers re-evaluating previously published papers. The intention of the Journal of Applied Econometrics is to provide an outlet for innovative, quantitative research in economics which cuts across areas of specialisation, involves transferable techniques, and is easily replicable by other researchers. Contributions that introduce statistical methods that are applicable to a variety of economic problems are actively encouraged. The Journal also aims to publish review and survey articles that make recent developments in the field of theoretical and applied econometrics more readily accessible to applied economists in general.