The Impact of Reinsurance

2021 ◽  
Author(s):  
Niels Viggo Haueter
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Insurance Industry ◽  
Natural Catastrophes ◽  
Security Interest ◽  
Environmental Deterioration ◽  
Stabilizing Effect ◽  
The 1960S ◽  
The Impact

Reinsurance is perceived to have a stabilizing effect on the direct insurance industry and thereby on the economy overall. Yet, research into how exactly reinsurance impacts various areas is scarce. Traditionally, studying the impact of reinsurance used to be in the domain of actuaries; since the 1960s, they have tried to assess how different contract elements can provide what came to be called “optimal reinsurance.” In the 2010s, such research was intensified in developing countries with the aim to deploy reinsurance to support economic growth and security. Interest in reinsurance increased when the industry became more visible in the 1990s as the impact of natural catastrophes started being linked to a changing climate. Reinsurers emerged as spokespeople for climate-related issues, and the industry took a lead role in arguing in favor of implementing measures to reduce environmental deterioration. Reinsurers, it was argued, have a vested interest in managing the impact of natural catastrophes. This triggered discussions about the role of reinsurance overall and about how to assess its impact. In the wake of the financial crisis of 2007 and 2008, interest in reinsurance again surged, this time due to perceived systemic impacts.

scholarly journals Economic Globalization, Entrepreneurship, and Inclusive Growth in Africa

2021 ◽  
Vol 36 (4) ◽  
pp. 689-717
Author(s):  
Folorunsho M. Ajide ◽  
Tolulope T. Osinubi ◽  
James T. Dada
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Globalization ◽  
Inclusive Growth ◽  
African Countries ◽  
Dynamic Relationship ◽  
Causality Tests ◽  
The Impact ◽  
The Relationship

An increasing number of studies are examining the relationship between entrepreneurship and growth. This relationship is controversial, especially for developing countries. Recent improvements in economic growth have led to a focus on growth inclusiveness, which spreads economic opportunities throughout a society. However, studies that focus on the role of entrepreneurship in inclusive growth remain scarce. To fill that gap, this study investigates the dynamic relationship between economic globalization, entrepreneurship, and inclusive growth in 21 African countries using panel econometrics to examine data covering 2006 to 2018. The results reveal that the impact of economic globalization and entrepreneurship on inclusive growth is positive and significant. We find that economic globalization enhances entrepreneurial development, and causality tests show that economic globalization drives inclusive growth. We also find a unidirectional causality from entrepreneurship to inclusive growth. Finally, we observe no direction of causality between economic globalization and entrepreneurship but observe a bidirectional causality between governance and entrepreneurship. We discuss the implications of these results.

scholarly journals The Role of FDI Inflow in Economic Growth: Evidence from Developing Countries

2021 ◽  
Vol 2 (1) ◽  
pp. 68-80
Author(s):  
Cao Liang ◽  
Salman Ali Shah ◽  
Tian Bifei
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Positive Relationship ◽  
Practical Implication ◽  
Least Square ◽  
Annual Data ◽  
World Economic ◽  
The Impact ◽  
The Relationship

Purpose: This study is carried out to study the relationship between FDI and economic growth of developing countries. Approach/ Methodology/ Design: The study used data from 2000 to 2019 for 113 developing and transition countries. The study used Hausman fixed effect and instrumental variables two stage least square region to trace the results. Findings: The result of the study found a positive relationship between FDI and economic growth. An increase in FDI inflow will result and upsurge in economic growth of developing country. The relationship between unemployment and economic growth is found negative. The overall results show that FDI and economic growth has a positive relationship in developing countries. Practical Implication: This study used annual data of pre pandemic. It is concluded in the study that future studies have to check the impact in post pandemic scenario. Originality/Value: Though the relationship between FDI and economic growth is studied widely in different studies. As mentioned that COVID-19 pandemic changed the world economic situation there is much more aspects of FDI and economic growth is remaining to study. The issue of FDI and economic growth for a cluster of 113 countries is addressed in this study.

Sicherung privater Investitionen – ein geeignetes Instrument der Entwicklungshilfe?

2008 ◽  
Vol 57 (3) ◽  
Author(s):  
Peter Egger ◽  
Andreas Freytag ◽  
Sebastian Voll ◽  
Philipp Harms
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Property Rights ◽  
Host Country ◽  
Emerging Market ◽  
Developed Countries ◽  
Bilateral Investment Treaties ◽  
Investment Treaties ◽  
The Impact

AbstractPeter Egger’s paper provides a synthesis of findings with regard to the impact of bilateral as well as multilateral means of protection of cross-border direct investments in less developed countries and, in turn, on their economic growth. In particular, he focuses on the role of bilateral investment treaties and multilateral agreements such as the GATS in this regard. Previous empirical work identifies a significant positive impact of bilateral investment treaties on FDI. It suggests a similar impact of the GATS on FDI. He argues that these agreements contribute significantly to economic growth in less developed economies and countries in transition by spurring technology transfers through multinational activity of the developed countries in other economiesAndreas Freytag and Sebastian Voll emphasize the important role of adequate institutions both for investment and development. The question is, whether investment guarantees as insurance for political risks in the recipient country support economic development or not. Actually, the German Federal Republic is the leading warrantor for FDI-insurances on the world, but the benefiting countries are not the LDC’s. Using these warranties as an instrument of development policy in the future is content of actual political discussion. They argue that, in case of economies with weak domestic institutions, investment guarantees could provide disincentives for politicians in the target country to establish rule of law and good governance. On the other hand, investment guarantees could foster development by providing additional access to FDI, especially in emerging market economies with sufficient and improving institutional qualityPhilipp Harms points out while foreign direct investment (FDI) flows to developing countries and emerging markets have increased substantially in recent years, many low-income countries are still shunned by multinational firms. One of the key causes for this observation is the poor quality of institutions and an often precarious political environment in these countries. Given the benefits of FDI for host country productivity and income levels, it could thus be argued that protecting the security of property rights is an effective way of enhancing growth and prosperity in poor countries. While he agrees with this point of view, he argues that “traditional” forms of development aid can substantially contribute to an improved investment climate in developing countries. This argument is based on the notion that insecure property rights reflect distributional conflicts in the host country population, and that appropriate development support can shift agents’ distributional interests in favor of foreign firms.

scholarly journals The Impact of the Life Insurance on Economic Growth in ASEAN

2018 ◽  
Vol 2 (2) ◽  
pp. 12-15
Author(s):  
Karin Amelia Safitri
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Life Insurance ◽  
Insurance Industry ◽  
Developed Countries ◽  
Fixed Effect Model ◽  
Insurance Premium ◽  
Insurance Companies ◽  
Positive Effects ◽  
The Impact

The development of the insurance business in ASEAN has an impressive growth in the course of recent years. Reverse statement from Ouédraogo et al., (2016) who explained the level of life insurance development in developing countries remains low comparatively to developed countries. The ASEAN insurance industry, with the increasing number of insurance companies and people using insurance services, can even play a greater role in supporting overall economic growth in that region. This study aimed at examining the contribution of life insurance sector which is measured by three parameters e.g insurance penetration, insurance density and premium volume to the economic growth in the sample of 6 developing countries on ASEAN religion during 2005-2015 period i.e. Singapore, Malaysia, Phillipine, Thailand, Vietnam and Indonesia. The analytical method is applied by using fixed effect model. The result of this study showed that the life insurance premium volume, penetration and density have positive effects on economic growth.

scholarly journals The Role of Remittances on Economic Growth: An Empirical Investigation Of 12 CEE Countries

2013 ◽  
Vol 12 (2) ◽  
pp. 193 ◽  
Author(s):  
Altin Gjini
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Fixed Effects ◽  
Capital Investment ◽  
Main Concern ◽  
Eastern European ◽  
Fixed Effects Model ◽  
Negative Effects ◽  
The Impact

This study investigates the role of remittances on economic growth in Central and Eastern European (CEE) countries. The main concern of CEE countries after the collapse of Communism has been to develop strategies for increasing their standard of living to the level of Western countries. Economic growth experienced after 1991 has been impressive for these countries. Factors that have influenced economic growth in developing countries vary from capital investment, to labor surplus, technological change, trade, foreign aid, foreign direct investment, research and development, and institutional factors. This papers main objective is to examine the impact of remittances on economic growth in 12 CEE developing countries[1] using balanced panel data covering the period from 1996?2010. We do this by using a fixed-effects model with heteroscedasticity corrected standard errors. We find that remittances have had negative effects on growth in this area for the period analyzed. Thus, an increase in remittances by 10% decreases the output by about 0.9%. [1] Albania, Bulgaria, Croatia, Czech Republic, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Slovakia, and Slovenia.

scholarly journals The Relationship between External Financial Flows and Economic Growth in the Southern African Development Community (SADC): The Role of Institutions

2016 ◽  
Vol 8 (1(J)) ◽  
pp. 87-103 ◽  
Author(s):  
Kapingura Forget Mingiri ◽  
S.I Ikhide ◽  
A Tsegaye
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Financial Flows ◽  
Empirical Results ◽  
External Finance ◽  
Domestic Savings ◽  
Low Levels ◽  
The Impact ◽  
The Relationship

The study examined the relationship between external financial flows, domestic savings and economic growth in the SADC region for the period from 1980 to 2009 specifically looking at the role played by institutions. The majority of countries in the SADC region are experiencing low levels of savings, which has led to them relying more on external financial flows to bridge the gap between domestic demand for finance and domestic supply. However the relationship between external finance and economic growth is still a contentious issue. Given this, the study has thus examined the link between growth and external finance in the region, specifically focusing on the impact of the different forms of external financial flows on economic growth in the region incorporating the role played by institutions. The empirical results revealed that three types of external financial flows have a significant impact on economic growth in the SADC region except ODA; however when all the different types of external financial flows were interacted with the measure of institutions, they all become significant and more enhanced in explaining economic growth in the region. This supports the hypothesis that good institutions are necessary in promoting economic growth in developing countries. The empirical results also suggest that foreign capital is another channel through which a crisis in developing countries can be transmitted to the SADC region.

AN EMPIRICAL STUDY OF INDIAN INSURANCE INDUSTRY POST GLOBAL FINANCIAL CRISIS

2015 ◽  
Vol 6 (01-02) ◽  
Author(s):  
Anis Ur Rehman ◽  
Yasir Arafat Elahi ◽  
Sushma .
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Insurance Industry ◽  
Primary Data ◽  
Policy Recommendations ◽  
Insurance Sector ◽  
The World ◽  
The Impact ◽  
The New Deal

India has recently emerged as a major political and economic power in the world. The financial crisis that engulfed the world in 2008 needed developing countries like India to lead the rescue and recovery, instead of G7 westerns countries who dealt with such crisis in the past. Recently, discussions and negotiations are going amongst G20 countries regarding a new global financial architecture (G-20 Summit, 2008). The outcome will affect the relevant industries in India and hence it is a public interest issue for the actuarial profession in the country. Increased and more intrusive and costly regulations and red tapes are likely to be a part of the new deal (Economic Survey 2009-10). The objective of this paper is to study the perception of higher level authorities in Insurance sector regarding the role of regulator in minimizing the impact of global financial crisis. The primary data has been collected from 200 authorities in insurance industry. The data has been analyzed with statistical tools like MS-Excel. On the basis of the findings, various measures and policy recommendations for insurers have been suggested to minimize the impact of crisis.

scholarly journals Past and future trends of Egypt’s water consumption and its sources

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Catherine A. Nikiel ◽  
Elfatih A. B. Eltahir
Keyword(s):  
Economic Growth ◽  
Virtual Water ◽  
Comprehensive Analysis ◽  
Future Trends ◽  
Nile Water ◽  
The Gift ◽  
Per Capita ◽  
The 1960S

AbstractFor millennia the Nile supplied Egypt with more water than needed. As the population grew and the economy expanded, demand on water increased accordingly. Here, we present a comprehensive analysis to reconstruct how total demand on water outstripped supply of the Nile water in the late 1970s, starting from a surplus of about 20 km3 per year in the 1960s leading to a deficit of about 40 km3 per year by the late 2010s. The gap is satisfied by import of virtual water. The role of economic growth in driving per capita demand on water is quantified based on detailed analysis of water use by agriculture and other sectors. We develop and test an empirical model of water demand in Egypt that relates demand on water to growth rates in the economy and population. Looking forward, we project that within this decade of the 2020 s, under nominal scenarios of population and economic growth, Egypt is likely to import more virtual water than the water supplied by the Nile, bringing into question the historical characterization of Egypt as “the gift of the Nile”.

scholarly journals Creating Destinations for a Better Tomorrow: UN Development Aid for Cultural Tourism in the 1960s

2021 ◽  
pp. 002200942097476
Author(s):  
Marie Huber
Keyword(s):  
Developing Countries ◽  
Development Aid ◽  
Employment Sector ◽  
Development Decade ◽  
Colonial Legacies ◽  
The Subject ◽  
1960S And 1970S ◽  
The 1960S ◽  
International Experts

Tourism is today considered as a crucial employment sector in many developing countries. In the growing field of historical tourism research, however, the relationships between tourism and development, and the role of international organizations, above all the UN, have been given little attention to date. My paper will illuminate how during the 1960s tourism first became the subject of UN policies and a praised solution for developing countries. Examples from expert consultancy missions in developing countries such as Ethiopia, India and Nepal will be contextualized within the more general debates and programme activities for heritage conservation and also the first UN development decade. Drawing on sources from the archives of UNESCO, as well as tourism promotion material, it will be possible to understand how tourism sectors in many so-called developing countries were shaped considerably by this international cooperation. Like in other areas of development aid, activities in tourism were grounded in scientific studies and based on statistical data and analysis by international experts. Examining this knowledge production is a telling exercise in understanding development histories colonial legacies under the umbrella of the UN during the 1960s and 1970s.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Mediating Effect ◽  
Social Dimension ◽  
Content Type ◽  
Intangible Resources ◽  
The Impact

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

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