The relationship between insurance and economic growth in Asian countries : A Regional Perspective

The purpose of this paper is to quantify the role of various economic, demographic, and institutional characteristics in the growth of the insurance market in Asia and to evaluate causality between insurance and economic growth. This paper employed the Generalized Method of Moments (GMM) to identify the drivers of insurance market growth and panel Granger causality test to empirically assess causality between insurance and economic growth. For analysis, a sample of 37 Asian countries is considered over 16 years from 2002 to 2017. The study identified that the relationship between insurance market growth and its drivers is different across the Asian regions. This study further finds that bidirectional causality between insurance and economic growth is existing for advanced Asia and emerging Asia