TITLE:
Relationship between Insurance and Economic Growth in Sub-Saharan African: A Panel Data Analysis
AUTHORS:
Taiwo Akinlo, Olumuyiwa Tolulope Apanisile
KEYWORDS:
Insurance Sector; Economic Growth; Panel Data Analysis
JOURNAL NAME:
Modern Economy,
Vol.5 No.2,
February
19,
2014
ABSTRACT: This
study examined the relationship between insurance and economic growth in
sub-Saharan Africa over the period 1986-2011. Pooled OLS, Fixed Effect Model and Generalized
Method of Moment Panel Model were employed in the estimation. The estimations
of the dynamic panel-data results show that insurance has positive and
significance impact on economic growth in sub-Saharan Africa. This shows that
premium contributes to economic growth in sub-Saharan Africa which means that a well-developed insurance sector is
necessary for the economic development, as it provides long-term investments
for economic growth and simultaneously strengthening risk-taking abilities. The
results also show that human capita has positive significant impact on economic
growth. Openness and interest rate have negative and statistical significant on economic growth.