Volume 8, Issue 31 (6-2018)                   jemr 2018, 8(31): 41-68 | Back to browse issues page

XML Persian Abstract Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

shahabadi A, Ahmadi M, Ali Moradi A M. The Interaction of Financial Development and Economic Freedom on Insurance Penetration Unsuccessful Countries in the Development of the Insurance Industry. jemr. 2018; 8 (31) :41-68
URL: http://jemr.khu.ac.ir/article-1-1606-en.html
Abstract:   (1960 Views)
The insurance industry as a means of transferring risk and paying damages, ensures the future and the confidence of individuals and as an investor's institution, It cumulation the saving resources and allocates it to the needs of investment and economic growth of the countries. Therefore, it is necessary to identify the factors influencing the development of this industry in countries with a low insurance penetration and action must be taken regarding reinforcement the increasing factors and Elimination its decreasing factors.In this regard, the present study has tried to determine the interaction between financial development and economic freedom indicators (total index, size of government, legal system and property rights, sound money, freedom to trade internationally and regulations) on the penetration insurance in Fifteen unsuccessful insurers will be insured over the period 2014-2000. For this purpose, the research model was estimated using panel data and generalized moment’s method. The results it shows the interaction of financial development and all index of economic freedom on insurance penetration the in selected countries have had a positive and meaningful.  Also, the individual effect of financial development and total economic freedom index is positive and significant. However, their individual influence on the insurance penetration is less than their interaction. Finally, the effect of control variables including per capita income, human capital and urbanization rate on the insurance penetration in the selected countries have had a positive and meaningful and the effect of unemployment and inflation have had a negative and meaningful.
Full-Text [PDF 859 kb]   (845 Downloads)    
Type of Study: Applicable | Subject: رشد و توسعه و سیاست های کلان
Received: 2017/09/18 | Accepted: 2018/03/14 | Published: 2018/06/13

References
1. Abbasi, E. and Derakhshideh, S. (2012). Effective factors on life insurance claims in Iran. Insurance Newsletter, 27(2): 1-24 [in Persian].
2. Abbasi, E. and TaghiAbadi, M. (2012). The effect of economic factors on the demand for supplementary treatment insurance. Journal of Insurance research, 23(4): 57-80 [in Persian].
3. Asiama, J. and Mobolaji, H. (2011). Trade and financial openness, institutional quality and financial development in Sub-Sahara Africa (SSA), International Conference on International Trade and Investment (ICITI).
4. Arellano, M. and Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 97: 58-277. [DOI:10.2307/2297968]
5. Arellano, M. and Bover, O. (1995). Another look at the instrumental-variable estimation of error-components models. Journal of Econometrics, 68(1): 29-51. [DOI:10.1016/0304-4076(94)01642-D]
6. Ahn, S. C. and Schmidt, P. (1995). Efficient estimation of models for dynamic panel data. Journal of Econometrics, 68(1): 5-27. [DOI:10.1016/0304-4076(94)01641-C]
7. Beck, T., and Webb, I. (2003). Economic, demographic and institutional determinants of life insurance consumption. The World Bank Economic Review, 17: 51-88. [DOI:10.1093/wber/lhg011]
8. Behkashi, M. M. (2010). Iran's economy in the context of globalization. Fifth Printing, Tehran, Nashreney [in Persian].
9. Blundell, R. and Bond, S. (2000). GMM estimation with persistent panel data: An application to production functions. Econometric Reviews, 19(3): 321-340. [DOI:10.1080/07474930008800475]
10. Berg, H. V. D. and Schmidt, J. R. (1994). Foreign trade and economic growth: time series evidence from Latin America. The Journal of International Trade & Economic Development: An International and Comparative Review, 3(3): 249 - 268. [DOI:10.1080/09638199400000016]
11. Beart, L., and Vennet, R. (2009). Bank ownership, firm value and firm capital structure in Europe. Working Paper, FINESS. [DOI:10.2139/ssrn.1342566]
12. Brown, M. J. and Kim, K. (1993). An international analysis of life insurance demand. Journal of Risk and Insurance, 60(4): 616-634. [DOI:10.2307/253382]
13. Chui, A.C.W. and Kwok, C.Y. (2009). Cultural and life insurance consumption: An international analysis using globe scores. Journal of Multinational Financial Management, 19(4): 273-290. [DOI:10.1016/j.mulfin.2009.02.001]
14. Dadgar, Y. and Nazari, R. (2009). Evaluation of financial development indicators in Iran. The First International Conference on the Development of the Financing System in Iran. Tehran, Center for Technology Studies, Sharif University of Technology [in Persian].
15. Esmaeili, F., Mirzaie, H. and Asadzadeh, A. (2014). Factors affecting life insurance claims in selected developing countries. Journal of Insurance research, 29(4): 61-83 [in Persian].
16. Feyen, E., Lester, R. and Rocha, R. (2011). What drives the development of the insurance sector? An empirical analysis based on a panel of developed and developing countries. The World Bank, Policy Research Working Paper 5572. [DOI:10.1596/1813-9450-5572]
17. Hammond, J. D., Houston, D. B. and Melander, E. R. (1967). Household life insurance premium expenditures: An empirical approach, Journal of Risk and Insurance, 34(3): 397-408. [DOI:10.2307/250854]
18. Hassanzadeh, A. and Kazemnejad, M. (2008). An overview of the role of insurance in the economy and capital markets of Iran and some of the developing and developed countries. Journal of Insurance Industry, 1(3 and 4): 231-269 [in Persian].
19. Hayashi, F. (2000). Econometrics. Princeton University Press, Princeton.
20. Hybati, F., Rahnemay Roodposhti, F., Nikomaram, H. and Ahmadi, M. (2008). The relationship of economic freedom with public-private partnerships and the presentation of a model for Iran. Journal of Economic Modeling, 2(2): 25-52 [in Persian].
21. Hosseinzadeh, H. (2014). Socio-economic factors on life insurance claims in Iran and the Commonwealth of Independent States. Journal of Sociological Studies, 4(13): 61-76 [in Persian].
22. Hwang, T. and Greenford, B. (2005). A cross-section analysis of the determinants of life insurance consumption in mainland China, Hong Kong and Taiwan. Journal of Risk Management and Insurance Review, 8(1): 103-125. [DOI:10.1111/j.1540-6296.2005.00051.x]
23. Ibiwoye, A., Ajibola, O. O. E. and Sogunro, A. B. (2012). Artificial neural network model for predicting insurance insolvency. International Journal of Management and Business Research. 2(1): 59-68.
24. Jalali-Lusans, E. (2005). The study of the effect of macroeconomic variables on the demand of individual insurance. Journal of Insurance Industry, 2: 117-158 [in Persian].
25. Kjosevski, J. (2012). The determinants of life insurance demand in central and southeastern Europe. International Journal of Economics and Finance, 4(3): 237-247. [DOI:10.5539/ijef.v4n3p237]
26. Laura, S. and Mihai, C. (2013). The role of institutional factors over the national insurance demand: Theoretical Approach and econometric estimations. Transylvanian Review of Administrative Sciences, 39: 32-45.
27. Law, S.H. and Saini, N.W. (2012). Institutional quality, governance, and financial development, Economics of Governance, 13(3): 217-236. [DOI:10.1007/s10101-012-0112-z]
28. Lim, C. C., and Haberman, S. (2004). Modelling life insurance demand from a macroeconomic perspective: The Malaysian case, Research paper: The 8th International Congress on Insurance, Mathematics and Economics, Rome.
29. Lin, X., Zhang, Y. and Zhu, N. (2009). Dose bank ownership increase firm value? Evidence from China. Journal of Financial Economics, 28(4): 720-737. [DOI:10.1016/j.jimonfin.2008.12.015]
30. Madheswaran, S. and Sen, S. (2008). An analysis of life insurance demand determinants for selected Asian economies and India. Asia- Pacific Journal of Risk and Insurance, 2(2): 1-26.
31. Mahdavi, R., Jahangard, E. and Khataei, M. (2010). The effect of financial market development on the effect of foreign direct investment on economic growth host countries: using panel data method. Journal of Economic Modeling Research, 1(2): 21-40 [in Persian].
32. Mahdavi Kelishi, Gh. and Majed, V. (2011). Analysis of economic, social and psychological factors affecting demand life insurance in Iran. Journal of Economic Modeling Research, 2(5): 21-46 [in Persian].
33. Mirzaei, A., Hosni, M. and Nouraldini, S. S. (2013). The effect of important indicators of insurance on economic growth in OPEC members using dynamic panel model by GMM. Insurance Survey, 29(1): 1-22 [in Persian].
34. Momeni-wesalian, H., Daghighi Asli, A. and Ale Ahmadi, E. (2013). Impact of inflation on life insurance and its neutralization strategies. Journal of Economic Sciences, 7(23): 31-59 [in Persian].
35. Nakata, H. and Sawada, Y. (2007). Demand for non-life insurance: A cross-country analysis. Working paper presented at CIRJE, University of Tokyo.
36. Nouri-Motlagh, S., Lotfi, F., Mohajerzadeh, S. Z., Gorji, A. and Omrani-Khou, H. (2015). Study of the determinants of demand for life insurance in selected countries. Journal of Health Management, 19(63) 9-19 [in Persian].
37. Pour Rostami, N. (2011). The role of legal and regulatory institutions in financial development with an emphasis on the banking sector. Journal of Economic Researches of Iran, 16(48): 55-85 [in Persian].
38. Rajan, R.G. and Zingales, D. (1998). Financial dependence and growth. American Economic Review, 88(3): 559-586.
39. Roe, M. and Siegel, J. (2011). Political instability: effects on financial development, roots in the severity of economic inequality, Journal of Comparative Economics, 39(3): 279-309. [DOI:10.1016/j.jce.2011.02.001]
40. Rubayah, Y. and Zaidi, I., (2000), Prospek industri insurans hayat abad ke-21, Utara Management Review, 1(2): 69-79.
41. Safarzadeh, I. and Jafari, H. (2013). Non-linear relationship between penetration coefficient and per capita income. Journal of Economic Modeling, 7(4): 53-70 [in Persian].
42. Samadi, A. H. (1388). Social capital and financial development: Iran's Economy (1350-1385). Journal of Economic Research, 44(88): 117-144 [in Persian].
43. Sameti, M., Shahnazi, R. and Dehghani Shaban, Z. (2006). The study of the effects of economic freedom on financial corruption. Journal of Economic Researches, 8(28): 87-105 [in Persian].
44. Sephardost, H. and Ebrahimnasab, S. (2013). The economic challenge of life insurance claims and governance quality in developing countries. Journal of Strategic and Metropolitan Policies, 1(3): 39-54 [in Persian].
45. Shahabadi, A. and Davari-kiash, R. (2016). The impact of economic freedom on the development of the banking sector of Iran. Journal of Economic Modeling, 9(30): 47-66 [in Persian].
46. ShahAbadi, A. and Jamehbezorgie, A. (2013). The impact of economic, political and civil liberties on immigration (with emphasis on the migration of elites). Journal of Parliament and Strategic, 21(77): 41-69 [in Persian].
47. ShahAbadi, A. and Mahmoudi, H. (2010). Investigating the relationship between development of financial intermediaries and value added in the agricultural sector of Iranian economy. Journal of Agricultural Economics and Development, 2(4): 496-508 [in Persian].
48. Shirvand, S. (2012). Monetary and financial organizations. First Printing, Tehran, Kavir Publishing [in Persian].
49. Skipper, H. D. (1997). Foreign insurers in emerging markets; issues and concerns, Occasional Paper 97-2, Center for Risk Management and Insurance.
50. Soo, H. H. (1996). Life insurance and economic growth: theoretical and empirical investigation. University of Nebraska, Lincoln.
51. Yung, B. (2011). Dose democracy foster financial development? An empirical analysis. Economic Letters, 112(3): 262-265. [DOI:10.1016/j.econlet.2011.05.012]
52. Zerriaa, M. and Noubbigh, H. (2016). Determinants of life insurance demand in the MENA region. The Geneva Papers on Risk and Insurance - Issues and Practice, 41(3): 491-511. [DOI:10.1057/gpp.2016.1]
53. http://data.worldbank.org/data-catalog/world-development-indicators
54. http://www.swissre.com/sigma.
55. http://www.barrolee.com/update 2016 June.
56. http://www.fraserinstitute.org/programsinitiatives/economic-freedom.aspx

Add your comments about this article : Your username or Email:
CAPTCHA

Send email to the article author


© 2019 All Rights Reserved | Journal of Economic Modeling Research

Designed & Developed by : Yektaweb