THE EFFECT OF INSURANCE PREMIUM ON ECONOMIC GROWTH IN EUROPEAN UNION COUNTRIES: PANEL DATA ANALYSIS

Authors : Neylan KAYA, Nazife Özge KILIÇ

Pages : 442-451

Doi:10.20990/kilisiibfakademik.705585

View : 18 | Download : 8

Publication Date : 2020-11-26

Article Type : Research Paper

Abstract :Funds collected as insurance premiums are very important for the development and deepening of the national economies. These premiums paid to insurance companies provide funds for capital markets by creating savings sources. The aim of this study is to investigate how and in what direction the insurance premium volume affects the economic growth of these 25 countries. For this purpose, Johansen Cointegration, Kao cointegration, panel FMOLS, Dumitrescu and Hurlin (2012) Panel Granger Causality methods were used. Cointegration tests show that economic growth and insurance premium volume variables have long-term cointegration relationships. According to Panel FMOLS test results, a 1% increase in insurance premium volumes leads to an increase of 0.113% in economic growth. According to Dumitrescu and Hurlin (2012) panel Granger causality analysis, there is one-way causality from insurance volumes to economic growth.
Keywords : Insurance Premium Volume, Economic Growth, Panel Data Analysis