Using the econometric methods outlined above, this section presents regression results concerning the relationship between economic growth and insurance density. The regressions simply include the logarithm of initial real per capita GDP, the logarithm of gross enrolment ratio of tertiary students, the logarithm of gross fixed assets investment, the average inflation rate over the period, and trade balance of the economies. We present the panel estimator regressions.
the statistically and economically significant relationship between the insurance development and economic growth. The first column reports the result of the pure regression without the use of the variables forming the policy conditioning information set (trade balance, inflation rate, gross fixed assets investment). Insurance density is positively correlated with economic growth at the 5 per cent significance level in the columns 1–5, where the following potential econometric problems are absent: simultaneity bias, omitted variables, serial correlations, and over-fitting problems. Inflation rate and trade balance have negative signs and enter the regression significantly. Gross fixed assets investment is positively correlated with the economic growth. In the last column, we include all the policy conditioning information set and conclude that economic growth is also positively influenced by insurance density. Regarding the magnitude of the measured effects, it has been shown in the last column that there is about 4.781 per cent increase in economic growth given 1 per cent increase in total insurance density. For the purpose of comparison, the enhancement impact of banking activities on economic growth is no more than 1.8 per cent given 1 per cent increase in bank credit
the statistically and economically significant relationship between the insurance development and economic growth. The first column reports the result of the pure regression without the use of the variables forming the policy conditioning information set (trade balance, inflation rate, gross fixed assets investment). Insurance density is positively correlated with economic growth at the 5 per cent significance level in the columns 1–5, where the following potential econometric problems are absent: simultaneity bias, omitted variables, serial correlations, and over-fitting problems. Inflation rate and trade balance have negative signs and enter the regression significantly. Gross fixed assets investment is positively correlated with the economic growth. In the last column, we include all the policy conditioning information set and conclude that economic growth is also positively influenced by insurance density. Regarding the magnitude of the measured effects, it has been shown in the last column that there is about 4.781 per cent increase in economic growth given 1 per cent increase in total insurance density. For the purpose of comparison, the enhancement impact of banking activities on economic growth is no more than 1.8 per cent given 1 per cent increase in bank credit
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