engleski

The relationship of insurance and economic growth: evidence from European countries

There is a growing interest in the relationship between financial intermediation and economic growth. It resulted mainly from the development of endogenous growth models. Well developed financial intermediation can promote economic growth through increase of capital productivity and efficiency of transformation of saving into investment. While many empirical studies have investigated the hypothesis, they mainly cover the relationship between banking development and economic growth. Although other financial intermediaries are growing in importance and among them insurance companies too, there are a few empirical researches on their contribution to economic growth. The aim of this work is to examine if the insurance sector plays a growth-supporting role while controlling for other influences on economic growth. In order to provide the empirical evidence we are going to specify simultaneous system of equations and apply a cross-country data analysis using data from European countries.

Insurance; economic growth; European countries; simultaneous system of equations

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