摘要：AbstractThis paper examines the causal relationship between insurance market penetration and per capita economic growth in 19 Eurozone countries for the period 1980–2014. We use three different indicators of insurance market penetration (IMP), namely life insurance penetration, non-life insurance penetration, and total (both life and non-life) insurance penetration. We particularly emphasize on whether Granger causality exists between these variables both ways, one way, or not at all. Our empirical results perceive both unidirectional and bidirectional causality between IMP and per capita economic growth. However, these results are mostly non-uniform across the Eurozone countries during this selected period. The policy implication is that the economic policies should recognize the differences in the insurance market and per capita economic growth in order to maintain sustainable growth in the Eurozone.Graphical abstractNote 1: HA1,B1: Insurance market activities in any year Granger-cause economic growth, leading to the occurrence of supply-leading hypothesis of insurance-growth nexus. HA2, B2: Economic growth in any year Granger-causes insurance market activities, leading to the occurrence of demand-following hypothesis of insurance-growth nexus. Note 2: Insurance market activities cover life insurance penetration, non-life insurance penetration, and total (both life and non-life) insurance penetration. Fig. 1: Proposed Model and HypothesesDisplay OmittedHighlights•This study inspects the causal links between insurance market penetration (IMP) and per capita economic growth.•We use 19 Eurozone countries between 1980 and 2014.•The analysis is based on countries of Eurozone and at the panel setting.•The study finds evidence of Granger causality between IMP and per capita economic growth.•Results in the short run are mostly non-uniform with a few exceptions.
关键词：IMP;Per capita economic growth;Granger causality;Eurozone countries
