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Financial access, governance and insurance sector development in Sub-Saharan Africa

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  • Asongu, Simplice A
  • Odhiambo, Nicholas M

Abstract

This study investigates the role of financial access in moderating the effect of governance oninsurance consumption in 42 Sub-Saharan African countries using data for the period 2004-2014.Two life insurance indicators are used, notably: life insurance and non-life insurance. Sixgovernance measurements are also used, namely: political stability, ?voice & accountability?,government effectiveness, regulation quality, corruption-control and the rule of law. The empiricalevidence is based on the Generalised Method of Moments (GMM) and Least Squares DummyVariable Corrected (LSDVC) estimators. Estimations from the LSDVC are not significant whilethe following main findings are established from the GMM. First, financial access promotes lifeinsurance through channels of political stability, ?voice & accountability?, governmenteffectiveness, the rule of law and corruption-control. Second, financial access also stimulates nonlifeinsurance via governance mechanisms of political stability, ?voice & accountability?,government effectiveness, regulation quality, the rule of law and corruption-control. This researchcomplements the sparse literature on insurance promotion in Africa by engaging the hithertounexplored role of financial access through governance channels.

Suggested Citation

  • Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Financial access, governance and insurance sector development in Sub-Saharan Africa," Working Papers 25709, University of South Africa, Department of Economics.
    • Handle: RePEc:uza:wpaper:25709
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    Cited by:

    1. Simplice A. Asongu, 2019. "FDI in Selected Developing Countries: Evidence from Bundling and Unbundling Governance," Working Papers 19/057, European Xtramile Centre of African Studies (EXCAS).
    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Finance, governance and inclusive education in Sub-Saharan Africa," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 17(8), pages 1044-1061, July.
    3. Zhu, Chaowei & Zhang, Fan & Zhang, Yuling, 2023. "Revisiting financial opening and financial development: A regulation heterogeneity perspective," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 181-197.
    4. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "Information Asymmetry and Insurance in Africa," Journal of African Business, Taylor & Francis Journals, vol. 22(3), pages 394-410, July.
    5. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Enhancing ICT for insurance in Africa," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 9(2), pages 16-27.
    6. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    7. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Insurance and Inequality in Sub-Saharan Africa: Policy Thresholds," Working Papers of the African Governance and Development Institute. 20/005, African Governance and Development Institute..
    8. Alberto Costantiello & Angelo Leogrande, 2023. "The Impact of Voice and Accountability in the ESG Framework in a Global Perspective," Working Papers hal-04043775, HAL.
    9. Adesoji O. Farayibi & Oludele Folarin, 2020. "Does Government Education Expenditure Affect Educational Outcomes? New Evidence from Sub-Sahara African Countries," Research Africa Network Working Papers 21/048, Research Africa Network (RAN).
    10. Adesoji Oladapo Farayibi & Oludele Folarin, 2021. "Does government education expenditure affect educational outcomes? New evidence from sub‐Saharan African countries," African Development Review, African Development Bank, vol. 33(3), pages 546-559, September.
    11. Adesoji O. Farayibi & Oludele Folarin, 2021. "Does Government Education Expenditure Affect Educational Outcomes? New Evidence from Sub-Sahara African Countries," Working Papers of the African Governance and Development Institute. 21/048, African Governance and Development Institute..
    12. Adesoji O. Farayibi & Oludele Folarin, 2021. "Does Government Education Expenditure Affect Educational Outcomes? New Evidence from Sub-Sahara African Countries," Working Papers 21/048, European Xtramile Centre of African Studies (EXCAS).

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    More about this item

    Keywords

    Insurance; Finance; Governance; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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