Journal of International Development · 2011 · 142 citations · 48 references
BusinessEconomicsInsuranceDevelopment EconomicsEconomic DevelopmentLife InsuranceInsurance Market StructureLife Insurance EconomicsEconomic Growth DynamicsFinancial Market DevelopmentFinancial Sector DevelopmentStock Market Development
The study examines how life insurance development influences economic growth and the conditions that shape this relationship. The analysis considers financial development, private saving rates, interest rates, social security spending, income, young dependency ratio, life expectancy, and geographic region as moderating factors. The results show that life insurance development positively affects economic growth overall, but the magnitude differs by country income level—being weaker in middle‑income and stronger in low‑income economies—and that life insurance and stock market development act as substitutes rather than complements, providing policy implications. © 2011 John Wiley & Sons, Ltd.
This article investigates the effect of life insurance on economic growth and what conditions affect the insurance-growth nexus. These conditions include the degree of financial development, private saving rates, interest rates, social security expenditures, income, young dependency ratio, life expectancy, and geographic regions. The main findings confirm the positive impact of the development of the life insurance market on economic growth. The insurance-growth nexus varies across countries with different conditions. For example, the positive impact on economic growth is mitigated in the middle-income countries, but amplified in the low-income countries. Moreover, both the development of stock market and the life insurance market are substitutes rather than complements. Based on our findings, this study offers useful insights for policy-makers and insurers. Copyright © 2011 John Wiley & Sons, Ltd.
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