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Interface of Insurance and Economic Growth: Nigerian Experience

Author

Listed:
  • Adedokun Lateef Adetunji

    (Department of Banking and Finance, College of Business and Management Studies, Kaduna Polytechnic, Kaduna, Nigeria,)

  • E. Chuke Nwude

    (Department of Banking and Finance, Faculty of Business Administration, University of Nigeria, Enugu Campus, Enugu State, Nigeria,)

  • Sergius N. Udeh

    (Department of Accountancy and Finance, Godfrey Okoye University, Enugu, Enugu State, Nigeria.)

Abstract

The study aims to confirm the existence of positive and significant relationship between insurance penetration/activity and economic growth in Nigeria. Applying Ordinary Least Square model on Nigerian time series data for the period 1996-2015 reveals that insurance industry makes positive and significant contribution on Nigeria's economic growth. Based on the findings, it is recommended that government should implement economic policies capable of stimulating insurance industry activity such as the enforcement of the statutory insurances; insurance industry stake-holders should improve the insurance image laundry and market awareness activity by promoting systematic educational campaign in the media and among the general public.

Suggested Citation

  • Adedokun Lateef Adetunji & E. Chuke Nwude & Sergius N. Udeh, 2018. "Interface of Insurance and Economic Growth: Nigerian Experience," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 16-26.
    • Handle: RePEc:eco:journ1:2018-04-3
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    References listed on IDEAS

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    2. Pei‐Fen Chen & Chien‐Chiang Lee & Chi‐Feng Lee, 2012. "How does the development of the life insurance market affect economic growth? Some international evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(7), pages 865-893, October.
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    4. Peter Haiss & Kjell Sümegi, 2008. "The relationship between insurance and economic growth in Europe: a theoretical and empirical analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(4), pages 405-431, September.
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    6. Liu, Guan-Chun & Lee, Chien-Chiang & Lee, Chi-Chuan, 2016. "The nexus between insurance activity and economic growth: A bootstrap rolling window approach," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 299-319.
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    Cited by:

    1. Joyce M. Odiachi & Owolabi L. Kuye & Abdul-Hameed A. Sulaimon, 2021. "Driving Organisational Sustainability in the Nigerian Insurance Sector: The Role of Competitive Intelligence," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(1-2), pages 37-54, January-J.

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    More about this item

    Keywords

    Insurance; economic growth; Nigeria; insurance premium; insurance investment; emerging economy.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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