scholarly journals The Impact of Regulatory Quality on the Nexus between Life Insurance Development and Economic Growth: Evidence from European Developing Countries

2020 ◽  
pp. 141-152
Author(s):  
Gengnan Chiang ◽  
Chin-Chi Liu
Keyword(s):  
Economic Growth ◽  
Life Insurance ◽  
Smooth Transition ◽  
Growth Effect ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Smooth Transition Regression ◽  
The Impact ◽  
The Relationship ◽  
Insurance Development

The purpose of this study is to explore whether the regulatory quality influences the relation between life insurance development and economic growth by applying a nonlinear panel smooth transition regression (PSTR) model. Using the data from Worldwide Governance Indicators (WGI) to assess the soundness of regulatory quality, this paper finds that the relationship between life insurance development and economic growth is significantly positive in the countries with relatively better regulatory quality. Our findings not only indicate that sound regulatory quality could encourage the growth effect of life insurance sectors but also have far-reaching practical implications for other economies to realize regulatory quality should matter for the development of the economic growth.

scholarly journals Revisiting the role of governance and institutions in the impact of financial liberalization on economic growth using the PSTR model

2017 ◽  
Vol 64 (3) ◽  
pp. 315-336 ◽  
Author(s):  
Hichem Saidi ◽  
Houssem Rachdi ◽  
Nidhal Mgadmi
Keyword(s):  
Economic Growth ◽  
Financial Liberalization ◽  
Growth Models ◽  
Study Data ◽  
Smooth Transition ◽  
Smooth Transition Regression ◽  
The Impact ◽  
The Relationship ◽  
Endogenous Growth Models

This paper provides a comprehensive review of the literature on the dual effect of financial liberalization over more than three decades, starting from the independent contributions of Ronald I. McKinnon and Edwards S. Shaw on this topic. In this regard, the paper revisits the effects of financial liberalization and governance on growth. Moreover, it presents a summary of current research in this area, covering the conclusions of the endogenous growth models, issues on volatility and the relationship between financial liberalization, institutions, governance and economic growth. To study data of 54 countries from 1985 to 2010 and because the nexus between financial liberalization and economic growth is nonlinear and depends on specific national factors especially institutions quality and governance, the Panel Smooth Transition Regression (PSTR) model is used. The main result of this study shows that a better contribution of financial liberalization to economic growth requires the interrelationship and the complementarity between financial liberalization and governance. Overall, regardless of the level of liberalization, output income is always higher with better governance and institutions.

scholarly journals Corruption, governance and economic growth in Sub-Saharan Africa: a need for the prioritisation of reform policies

2014 ◽  
Vol 10 (2) ◽  
pp. 316-330 ◽  
Author(s):  
Kamil Omoteso ◽  
Hakeem Ishola Mobolaji
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Political Stability ◽  
Content Type ◽  
Governance Indicators ◽  
Data Framework ◽  
Regulatory Quality ◽  
The Impact ◽  
Control Of Corruption ◽  
Ssa Countries

Purpose – This study aims to investigate the impact of governance indices (especially control of corruption) on economic growth in some selected Sub-Sahara African (SSA) countries with a view to making policy recommendations. Specifically, the study attempts to assess whether either governance reforms (especially those relating to control of corruption) or simultaneous policy reforms could have any impact on the growth of the sample SSA countries. Design/methodology/approach – The governance indicators used in this study were drawn from the PRS Group and the Worldwide Governance Indicators for 2002-2009, while the real gross domestic product (GDP) per capita growth data were obtained from the World Bank database. The study covered 47 SSA countries, and it adopted the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses. Findings – The study found that political stability and regulatory quality indicators have growth-enhancing features, as they impact on economic growth in the region significantly, while government effectiveness impacts negatively on economic growth in the region. Despite, several anti-corruption policies in the region, the impact of corruption control on economic growth is not very obvious. The study also found that simultaneous implementation of the voice and accountability and the rule of law indicators has more positive impact on economic growth in the region. Both policies are complementary, and, hence, can be pursued simultaneously. Research limitations/implications – The results suggest that reform efforts that aim at enhancing accountability, regulatory quality, political stability and the rule of law have more growth-enhancing features and, thus, should be given more priority over reform efforts that singly address the issue of control of corruption due to the endemic, systemic and ubiquitous nature of corruption in the region. Practical implications – The study suggests that reform efforts that aim at enhancing accountability, regulatory quality and rule of law have more growth-enhancing features and, therefore, should be given more priority. Originality/value – Many previous studies attempted to examine the impact of corruption on economies, but this paper tries to assess the effect of corruption control and other governance indices on economic growth in the most vulnerable region of the world, the SSA. Besides, the study adopts the panel data framework which makes it possible to allow for differences in the form of unobservable individual country effects.

Application of smooth transition regression (STR) model on the relationship between natural gas consumption and economic growth in Nigeria

2018 ◽  
Vol 12 (2) ◽  
pp. 284-296 ◽  
Author(s):  
Mukhtar Danladi Galadima ◽  
Abubakar Wambai Aminu
Keyword(s):  
Economic Growth ◽  
Natural Gas ◽  
Threshold Value ◽  
Optimal Level ◽  
Smooth Transition ◽  
Content Type ◽  
Smooth Transition Regression ◽  
Gas Consumption ◽  
Natural Gas Consumption ◽  
The Relationship

Purpose The purpose of this paper is to identify the level of natural gas consumption that can be adjudged as capable of improving the growth of the Nigerian economy, to investigate whether natural gas consumption is at optimal level in Nigeria and to examine the nature and rate to which natural gas consumption affects economic growth in Nigeria at low and high regimes. Design/methodology/approach The tool used to achieve the objectives of the paper is the smooth transition regression (STR) model. Findings The findings of the paper are that the relationship between natural gas consumption and economic growth in Nigeria is asymmetric, where the natural gas consumption threshold value in the country is 9085.36 standard cubic meters, whereas the level of its consumption in the country is below the optimal level. Further, in both low and high regimes, natural gas consumption has been found to have a positive and significant impact on economic growth in Nigeria. Practical implications The policy implication of the paper is that natural gas consumption in Nigeria should not be less than 9085.36 standard cubic meters and the country should intensify efforts to increase the level of natural gas consumption, as it is below the optimal level and its consumption bolsters the growth of Nigerian economy. Originality/value What is new in this paper is its ability to use the STR model. To the best of the authors’ knowledge, such methodology has not been adopted before in such a relation.

scholarly journals Does Good Governance Matter? Kazakhstan’s Economic Growth and Worldwide Governance Indicators

2020 ◽  
Vol 10 (1) ◽  
pp. 1-13
Author(s):  
Aikozha Absadykov
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Good Governance ◽  
Political Stability ◽  
Gdp Per Capita ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Per Capita ◽  
The Relationship ◽  
Control Of Corruption

Good governance is generally believed to improve country’s economic performance. This paper studies the relationship between the World Bank’s Worldwide Governance Indicators (Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law, Control of Corruption) and economic growth in terms of GDP per capita in Kazakhstan. The findings of the research indicate that there is a significant positive relationship between good governance and economic performance of Kazakhstan. Specifically, results show that the Control of Corruption has the strongest impact on GDP per capita. 

On the nexus of CO2 emissions and renewable and nonrenewable energy consumption in Europe: A new insight from panel smooth transition

2020 ◽  
pp. 0958305X2093768 ◽  
Author(s):  
Huthaifa Alqaralleh
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Business Cycle ◽  
Co2 Emissions ◽  
Environmental Kuznets Curve ◽  
Smooth Transition ◽  
Kuznets Curve ◽  
Smooth Transition Regression ◽  
Combat Climate Change ◽  
The Relationship

This study seeks, within the extended framework of the so-called environmental Kuznets curve (EKC), to analyse the nonlinear effect of economic growth and energy consumption on environmental pollution (measured by CO2 emissions) in 30 countries, over the period 2000 – 2018. The panel smooth transition regression (PSTR) model is used to allow such a relationship between variables in different economic regimes to be determined. According to the analysis results, this study strengthens the idea that the relationship can be described as a shaped business cycle, in which economic growth first increases environmental degradation, and then, after a certain growth (income) level has been reached, reduces it. This business cycle relationship suggests that environmental improvements will eventually occur as economies grow. Another implication of these results is the importance of using energy in a greener way to combat climate change and to sustain economic development.

Impact Of Insurance On Economic Growth: The Case Of Republic Of Macedonia

2012 ◽  
Vol 4 ◽  
Author(s):  
Jordan Kjosevski
Keyword(s):  
Economic Growth ◽  
Life Insurance ◽  
Insurance Sector ◽  
Republic Of Macedonia ◽  
Insurance Penetration ◽  
The Republic ◽  
And Control ◽  
The Impact ◽  
Determinants Of Economic Growth ◽  
Insurance Development

The purpose of this paper is to examine the impact of insurance and economic growth, with empirical analysis for the Republic of Macedonia. We apply multiple regression and control for other relevant determinants of economic growth. The analysis used data for the period 1995 - 2010. In order to solve the model in the analysis will use the technique of least squares, followed by analysis of variability in order to identify the effects of each variable. Insurance development is measured by insurance penetration (insurance premiums in percentage of GDP). We used three different insurance variables - life insurance, non-life insurance and total insurance penetration. According to our findings, insurance sector development positively and significantly affects economic growth. The results are confirmed in terms of non-life insurance, and, total insurance, while the results show that life insurance negatively affect economic growth.

scholarly journals Corruption Prevention and Economic Growth: A Mediating Effect of Rule of Law

2018 ◽  
Vol 6 (2) ◽  
pp. 128 ◽  
Author(s):  
Qian Hongdao ◽  
Ayesha Mumtaz ◽  
Hamid Mukhtar ◽  
Hafiz Abdul Rahman Saleem ◽  
Sonia Azam
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Empirical Studies ◽  
Mediating Effect ◽  
Governance Indicators ◽  
The World ◽  
Corruption Prevention ◽  
The Impact ◽  
The Relationship ◽  
Control Of Corruption

This article is based on the mediating effect of rule of law between control of corruption and economic growth in China. Many empirical studies have been conducted on the relationship of corruption with economic growth, income, democracy, education, employment rate and the likes. Most of them are based on linear relationship and evaluate the impact of corruption and corruption prevention on different economic and social variables. But the study under consideration is focusing upon the role of rule of law in control of corruption and economic growth in China. It puts forth a question that what kind of effects rule of law put on economic growth and corruption prevention. The top seven economies of the world have been selected and data has been extracted from the Worldwide Governance indicators of the World Bank. In order to address the above question, the study was divided into two major parts. First, the author has applied regression analyses to see the relationship among the economic growth, rule of law and corruption; and also the impact of economic growth and control of corruption on rule of law. Then, mediation analysis has been conducted to see if rule of law plays a role in control of corruption and economic growth. The results show that economic growth significantly improve the level of control of corruption and rule of law plays a partial intermediary role in the process of economic development to enhance the corruption prevention. Second, the author has discussed the condition of rule of law and corruption in the era of the current leader, Xi Jinping and before 2012.

Assessing the Impact of Suicide Exclusion Periods on Life Insurance

Crisis ◽  
2010 ◽  
Vol 31 (4) ◽  
pp. 217-223 ◽  
Author(s):  
Paul Yip ◽  
David Pitt ◽  
Yan Wang ◽  
Xueyuan Wu ◽  
Ray Watson ◽  
...  
Keyword(s):  
Life Insurance ◽  
Accidental Death ◽  
Insurance Policy ◽  
Death Rates ◽  
Insurance Policies ◽  
Suicidal Death ◽  
Insured Individual ◽  
The Impact ◽  
Insurance Data ◽  
The Relationship

Background: We study the impact of suicide-exclusion periods, common in life insurance policies in Australia, on suicide and accidental death rates for life-insured individuals. If a life-insured individual dies by suicide during the period of suicide exclusion, commonly 13 months, the sum insured is not paid. Aims: We examine whether a suicide-exclusion period affects the timing of suicides. We also analyze whether accidental deaths are more prevalent during the suicide-exclusion period as life-insured individuals disguise their death by suicide. We assess the relationship between the insured sum and suicidal death rates. Methods: Crude and age-standardized rates of suicide, accidental death, and overall death, split by duration since the insured first bought their insurance policy, were computed. Results: There were significantly fewer suicides and no significant spike in the number of accidental deaths in the exclusion period for Australian life insurance data. More suicides, however, were detected for the first 2 years after the exclusion period. Higher insured sums are associated with higher rates of suicide. Conclusions: Adverse selection in Australian life insurance is exacerbated by including a suicide-exclusion period. Extension of the suicide-exclusion period to 3 years may prevent some “insurance-induced” suicides – a rationale for this conclusion is given.

Applying Synthetic Control Method to Estimate the Impact of the Lava Jato Operation on the Worldwide Governance Indicators in Brazil

2021 ◽  
pp. 2631309X2110178
Author(s):  
Eduardo Carvalho Nepomuceno Alencar ◽  
Bryant Jackson-Green
Keyword(s):  
Rule Of Law ◽  
Control Method ◽  
Synthetic Control ◽  
Synthetic Control Method ◽  
The Rule Of Law ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Legal Judgments ◽  
The Impact ◽  
Control Of Corruption

In 2014, the most prominent anti-corruption investigation in Latin America called Lava Jato, exposed a Brazilian corruption scheme with reverberations in 61 countries, resulting in legal judgments for nearly 5 billion USD in reimbursements thus far. This article applies the synthetic control method on data from 135 countries (2002–2018) to test the hypothesis that Lava Jato impacts the Worldwide Governance Indicators in Brazil. The findings reveal that Lava Jato negatively affects control of corruption, the rule of law, and regulatory quality. There are signs of possible improvement in at least the corruption and the rule of law measures. This paper brings value to the criminological body of literature, notably lacking in the Global South.

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