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Insurance Activity and Economic Growth Nexus in 31 Regions of China: Bootstrap Panel Causality Test

Author

Listed:
  • Hongbing HU

    (Zhongnan University of Economics and Law, Wuhan.)

  • Meng SU

    (ZNUFE)

  • Wenhua LEE

    (ZNUFE)

Abstract

This study applies the bootstrap panel Granger causality test to investigate the relationship between insurance activity and economic growth using data from 31 regions of China over the period 1997-2011. Empirical results indicate that the direction of causality seems to be in favor of the neutrality hypothesis in 21 out of 31 regions and a one-way Granger causality running from economic growth to insurance activity in 7 regions. Regarding the direction of insurance activity to economic growth nexus, we find a one-way Granger causality from insurance activity to economic growth for Jiangsu, Zhejiang, and Shandong.

Suggested Citation

  • Hongbing HU & Meng SU & Wenhua LEE, 2013. "Insurance Activity and Economic Growth Nexus in 31 Regions of China: Bootstrap Panel Causality Test," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 182-198, October.
    • Handle: RePEc:rjr:romjef:v::y:2013:i:3:p:182-198
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    References listed on IDEAS

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    Cited by:

    1. Lester, Rodney, 2014. "Insurance and inclusive growth," Policy Research Working Paper Series 6943, The World Bank.
    2. Chien-Chiang Lee & Tie-Ying Liu, 2017. "Insurance development, banking activities, and regional output: evidence from China," Empirical Economics, Springer, vol. 53(3), pages 1059-1081, November.
    3. Mihail Petkovski & Kjosevski Jordan, 2014. "An Analysis Of Non-Life Insurance Determinants For Selected Countries In Central And South Eastern Europe: A Co-Integration Approach," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 160-178, October.
    4. Mehmood, Bilal & Shahbaz, Muhammad & Jiao, Zhilun, 2023. "Do Muslim economies need insurance to grow? Answer from rigorous empirical evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 346-359.

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    More about this item

    Keywords

    insurance activity; economic growth; Bootstrap Panel Granger Causality Test;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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