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An Analysis Of Non-Life Insurance Determinants For Selected Countries In Central And South Eastern Europe: A Co-Integration Approach

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  • Mihail Petkovski

    (Financial Management, Faculty of Economics, Ss Cyril and Methodius University in Skopje, Skopje, Republic of Macedonia.)

  • Kjosevski Jordan

    (Corporate Sector Lending in Stopanska Banka AD – Skopje, Republic of Macedonia.)

Abstract

This study examines the determinant of non-life insurance consumption in 16 countries in Central and South-Eastern Europe (CSEE) during the period 1992-2011 with an Larsson et al. (2001) cointegration test and the dynamic ordinary least squares. These techniques will help us to understand which are the determinants of non-life insurance consumption in 16 countries in Central and South- Eastern Europe (CSEE), revealing the significant influence between endogenous variables. Empirical results provide the evidence that GDP per capita, and number of passenger cars per 1.000 people positively and significantly influence non-life insurance consumption in the long-run.

Suggested Citation

  • 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.
    • Handle: RePEc:rjr:romjef:v::y:2014:i:3:p:160-178
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    Cited by:

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    3. Lee, Hui Shan & Cheng, Fan Fah & Chong, Shyue Chuan & Sia, Bik Kai, 2018. "Influence of Macroeconomics Factors and Legal Stability to the Insurance Growth in the ASEAN-5 Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 219-229.
    4. MUKHERJEE Abhijit & GHOSH Amlan, 2022. "Role Of Economic Factors In Property Liability Insurance Consumption: Empirically Examining The Indian Market," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(1), pages 112-129, April.
    5. Hui Shan Lee & Shyue Chuan Chong & Shen Yap & Bik Kai Sia & Ying Xi Chen, 2021. "Does Economic Freedom in Host Countries Lead to Increased Non-Life Insurance Development?," SAGE Open, , vol. 11(4), pages 21582440211, October.
    6. Guochen PAN & Tsangyao CHANG & Mei-Chih WANG & Mengqi LIU & Iuliana Carmen BĂRBĂCIORU, 2023. "Reassessing the Nexus between Insurance Activities and Economic Growth in China Through Quantile Approaches," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 57-71, December.
    7. Rudra P. Pradhan & Saurav Dash & Rana Pratap Maradana & Manju Jayakumar & Kunal Gaurav, 2017. "Insurance market density and economic growth in Eurozone countries: the granger causality approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-24, December.
    8. Bilel Jarraya & Hatem Afi & Anis Omri, 2023. "Analyzing the Profitability and Efficiency in European Non-Life Insurance Industry," Methodology and Computing in Applied Probability, Springer, vol. 25(2), pages 1-25, June.
    9. Patricia Born & Douglas Bujakowski, 2022. "Insurance research in Central, Eastern, and Southeastern Europe: What we can learn from XPRIMM data," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(2), pages 219-231, June.
    10. Rudra P. Pradhan, Mak B. Arvin, John H. Hall and Neville R. Norman, 2017. "Insurance Market Development and Macroeconomic Interactions in Twenty-Six Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(4), pages 23-57, December.
    11. Patricia Born & Douglas Bujakowski, 2022. "Economic transition and insurance market development: evidence from post-communist European countries," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 47(1), pages 201-237, March.
    12. Cristina CIUMAS & Ramona Alexandrina COCA, 2015. "An Analysis Of The Factors Influencing The Demand For Catastrophe Insurance," Journal of Public Administration, Finance and Law, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 0(Special i), pages 69-78, September.

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    More about this item

    Keywords

    non-life insurance penetration; consumption; Central and South- Eastern European countries; panel unit root tests; Larsson et al. (2001) cointegration test; the dynamic ordinary least squares;
    All these keywords.

    JEL classification:

    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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