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Insurance Market Activity and Economic Growth: Evidence from Nigeria

Author

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  • Philip Chimobi Omoke

    (Covenant University, Nigeria)

Abstract

The focus of this study is to empirically assess insurance market activities in Nigeria with the view to determining its impact on economic growth. The period of study was 1970- 2008, the study made use of insurance density measures (premium per capita) as a measure for insurance market activity and real GDP for economic growth. It also employed control variables such as inflation and savings rate as other determinants of growth. The Johansen cointegration and vector error correction approach was used to estimate the relationship between the variables. All the variables used were stationary at first difference and the result showed a long term relationship existing among the variables. The hallmark finding of this study is that the insurance sector did not reveal any positively and significant affect on economic growth in Nigeria within the period of study. The result shows a low insurance market activity in Nigeria and that Nigerians have not fully embrace the insurance industry despite its importance to the growth of the economy.

Suggested Citation

  • Philip Chimobi Omoke, 2012. "Insurance Market Activity and Economic Growth: Evidence from Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 2(2), pages 34-47, April.
    • Handle: RePEc:dug:actaec:y:2012:i:2:p:34-47
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/947/1110
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    References listed on IDEAS

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    Cited by:

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    2. Uruakpa Chiagoziam Gospel PhD & Kenneth C Kama & Odionye Joseph C. PhD & Uzoma Kelechi P, 2023. "Insurance Penetration and Interest Rate Nexus in Nigeria; an Autoregressive Distributed Lag Approach," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 790-800, October.
    3. Siddharth Kumar & Naresh Chandra Sahu & Pushp Kumar, 2020. "Insurance Consumption and Economic Growth in the Post-Liberalized India: An Empirical Analysis," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(2), pages 218-228, February.
    4. S. A. Adebisi & S. E. O. Umukoro & A. S. Ohiani, 2019. "Evaluating Local Content Policy of Insurance Oil and Gas Risk Portfolio as Capacity Building Strategy for Nigeria Insurance companies," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(4), pages 69-77, December.
    5. D.O. Olayungbo & A.E. Akinlo, 2016. "Insurance penetration and economic growth in Africa: Dynamic effects analysis using Bayesian TVP-VAR approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1150390-115, December.
    6. Poyesh Bahadori Jahromi & Hojatallah Goudarzi, 2014. "The Study of Co-Integration and Casual Relationship Between Macroeconomic Variables and Insurance Penetration Ratio," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(7), pages 853-863, July.
    7. Dr. Fentaw Leykun, 2020. "Insurance Market Development, Financial Service Export and Economic Growth: Evidence from East African Countries," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(1), pages 57-98.
    8. Gabriela-Mihaela Muresan & Gabriel Armean, 2017. "Human Development And Perceived Corruption As Key Factors Of Life Insurance," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 443-451, July.
    9. Mehmet Balcilar & Rangan Gupta & Chien-Chiang Lee & Godwin Olasehinde-Williams, 2020. "Insurance-growth nexus in Africa," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(2), pages 335-360, April.
    10. S. A. Adebisi & S. E. O. Umukoro & A. S. Ohiani, 2019. "Evaluating Local Content Policy Of Insurance Oil And Gas Risk Portfolio As Capacity Building Strategy For Nigeria Insurance Companies," Management Strategies Journal, Constantin Brancoveanu University, vol. 44(2), pages 5-17.

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