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Spatial Convergence Processes On The European Union’S Life Insurance Market

Author

Listed:
  • Codruța MARE

    (Babes-Bolyai University, ClujNapoca)

  • Simona Laura DRAGOȘ

    (Babes-Bolyai University, ClujNapoca and Orleans University, Laboratory of Economics of Orleans, France)

  • Ingrid-Mihaela DRAGOTĂ

    (The Bucharest University of Economic Studies)

  • Gabriela Mihaela MUREȘAN
  • Claudia Andreea UREAN

    (Babes-Bolyai University, ClujNapoca)

Abstract

Starting from the idea that interactions exist in the European Union, we have implemented Spatial Econometrics methods to assess the occurrence of absolute, conditional or club β-convergence on the EU life insurance market. The life insurance density was used as a proxy for the development of the life insurance market in our analysis for 27EU countries, during the period 2002 – 2014. The absolute β-convergence was accepted by the spatial regression analysis. Spatial influences were accounted for by using the longitude and latitude as exogenous variables, together with the spatially lagged variable for the dependent. From all the economic, cultural and institutional determinants considered in our analysis, only the Hofstede’s uncertainty avoidance index proved to be statistically significant. The positive correlation coefficient between this cultural dimension and the growth rate of life insurance density in the European Union proves that countries with a higher level of uncertainty avoidance will experience higher growth rates.

Suggested Citation

  • Codruța MARE & Simona Laura DRAGOȘ & Ingrid-Mihaela DRAGOTĂ & Gabriela Mihaela MUREȘAN & Claudia Andreea UREAN, 2016. "Spatial Convergence Processes On The European Union’S Life Insurance Market," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(4), pages 93-107.
    • Handle: RePEc:cys:ecocyb:v:50:y:2016:i:4:p:93-107
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    References listed on IDEAS

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    Cited by:

    1. Gabriela Mihaela Mure?an & Cristian Mihai Dragos & Codru?a Mare & Simona Laura Dragos & Alexandra Pintea, 2021. "Socio-Economic and Macro-Financial Determinants and Spatial Effects on European Private Health Insurance Markets," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(56), pages 290-290, February.
    2. Dragos, Simona Laura & Dragos, Cristian Mihai & Muresan, Gabriela Mihaela, 2020. "From intention to decision in purchasing life insurance and private pensions: different effects of knowledge and behavioural factors," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).

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    More about this item

    Keywords

    life insurance; convergence; European Union; spatial econometrics; Hofstede’s cultural dimensions.;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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