The synergistic effect of insurance and banking sector activities on economic growth in Africa

被引:23
|
作者
Balcilar, Mehmet [1 ,2 ,3 ]
Gupta, Rangan [2 ]
Lee, Chien-Chiang [4 ]
Olasehinde-Williams, Godwin [5 ]
机构
[1] Eastern Mediterranean Univ, Dept Econ, Via Mersin 10, Famagusta, Northern Cyprus, Turkey
[2] Univ Pretoria, Dept Econ, ZA-0002 Pretoria, South Africa
[3] Montpellier Business Sch, Montpellier, France
[4] Natl Sun Yat Sen Univ, Dept Finance, Kaohsiung, Taiwan
[5] Eastern Mediterranean Univ, Dept Econ, Via Mersin 10, Famagusta, Northern Cyprus, Turkey
关键词
Synergistic effect; Insurance market; Banking sector; Africa; Dynamic GMM; Panel granger causality; FINANCIAL DEVELOPMENT; PANEL-DATA; INCREASING RETURNS; MARKET DEVELOPMENT; CAUSAL NEXUS; DETERMINANTS; IMPACT; POLICY; INCOME; TRADE;
D O I
10.1016/j.ecosys.2018.08.002
中图分类号
F [经济];
学科分类号
02 ;
摘要
It is widely understood that the insurance and banking sectors of every economy perform some functions in driving economic growth. What is not yet well documented is whether their roles are complimentary or substitutive. With the aid of the dynamic panel generalized method of moments (GMM) estimation technique, this paper evaluates the synergistic effect of both sectors on economic growth in a panel of 10 African countries that are responsible for most of the activities in the continent's financial sector. The insurance-banking-growth nexus was also examined through bootstrap panel causality tests. The results show that the life insurance market and the banking sector, as well as the non-life insurance market and the banking sector, are complimentary. We find that, overall, the relationship between the insurance and banking sectors in Africa is a complimentary one and that their synergistic impact on economic growth is positive. The feedback hypothesis was also confirmed in the relationship between the insurance sector and economic growth and between the banking sector and economic growth.
引用
收藏
页码:637 / 648
页数:12
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