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|Title: ||Insurance Development and Economic Growth: The Roles of Political, Economic, and Legal Environments|
|Authors: ||Lee, Chien-Chiang;Chang, Chi-Hung|
|Contributors: ||Department of Finance, National Sun Yat-sen University, Kaohsiung, Taiwan;Department of Risk Management and Insurance, Shih Chien University, Taipei, Taiwan|
|Keywords: ||insurance development, economic growth, dynamic panel threshold model,political environments, legal environments.|
|Issue Date: ||2013-08-07 09:36:13 (UTC+8)|
|Publisher: ||Department of Finance, National Sun Yat-sen University, Kaohsiung, Taiwan;Department of Risk Management and Insurance, Shih Chien University, Taipei, Taiwan|
|Abstract: ||Previous studies on the insurance-growth relationship have recognized the|
importance of insurance development on economic growth and documented the direct
contribution of the insurance market to economic growth. This paper investigates how
institutional environments shape the relation between insurance and economic growth.
We conduct four hypotheses – quasi-institution positivity, quasi-institution negativity,
quasi-institution duality, and quasi-institution neutrality – and evaluate which one
determines the insurance-growth relationship by applying a novel dynamic panel
threshold model. Using multiple measures related to political, economic, and legal
environments to assess the soundness of institutional environments, we find that the
quasi-institution negativity hypothesis is supported for the growth effect of life
insurance. The results in non-life insurance are not as uniform as those in life insurance.
The quasi-institution positivity, negativity, and neutrality are respectively supported in
different institutional measures at a marginal significance level. The overall findings
suggest that a sound institutional environment does not necessarily benefit the growth
effect of life insurance, but an unhealthy one does deter it, and that the growth effect of
non-life insurance is affected by specific dimensions of institutional environments.
|Relation: ||2013中部學術財金研討會 論文發表|
|Appears in Collections:||[財務金融學系] 會議論文|
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