Insurance and economic growth nexus: New Evidence from OECD countries

Figures & data

Figure 1. The scatter plot matrix of the variables under study.

Table 1. Results of panel data models (Total insurance premium)

	Model 1		Model 2
	Arellano-Bond	Arellano-Bover/Blundell-Bond	Arellano-Bond	Arellano-Bover/Blundell-Bond
I $ntercept$	−11.17***	−2.900**	−15.58***	−11.59***
	(0.886)	(0.915)	(2.071)	(2.353)
$GDP\left(-1\right)$	0.352***	0.714***	0.314***	0.726***
	(0.0513)	(0.0321)	(0.0424)	(0.0442)
$Capital$	0.680***	0.287***	0.628***	0.285***
	(0.0335)	(0.0517)	(0.0271)	(0.0534)
$Labor$	0.00918***	0.0101***	0.00614***	0.00960**
	(0.00112)	(0.00178)	(0.00147)	(0.00319)
$Insurance$	0.00456	0.152***	1.153*	1.388*
	(0.0341)	(0.0289)	(0.454)	(0.625)
$Insuranc{e}^2$	-	-	−0.0523*	−0.0677*
	-	-	(0.0214)	(0.0288)
N.obs	144	160	144	160
N instruments	14	22	14	23
AR (2) (P-value)	0.1065	0.177	0.2804	0.190
Sargan Test (P-value)	0.0896	0.5642	0.0990	0.5562

Notes: We report tests for second-order serial correlation (AR-2) and instrument validity (Sargan). Standard errors are in parentheses. *, **, and ***significant at 10 percent, 5 percent, and 1 percent.

Table 2. Results of panel data models (Life and Non-life)

	Model 3		Model 4
	Arellano-Bond	Arellano-Bover/Blundell-Bond	Arellano-Bond	Arellano-Bover/Blundell-Bond
I $ntercept$	−10.91***	−2.751**	−19.06***	−23.04***
	(0.818)	(0.967)	(1.897)	(3.878)
$GDP\left(-1\right)$	0.327***	0.696***	0.233***	0.469***
	(0.0515)	(0.0491)	(0.0423)	(0.0932)
$Capital$	0.671***	0.285***	0.591***	0.351***
	(0.0420)	(0.0593)	(0.0297)	(0.0619)
$Labor$	0.00927***	0.0116***	0.00480***	0.00237
	(0.00143)	(0.00246)	(0.00132)	(0.00255)
$lifeInsur$	0.0354***	0.0200**	1.101***	1.716***
	(0.00870)	(0.00772)	(0.261)	(0.410)
$NonlifeInsu$	−0.00406	−0.165***	0.962*	1.920*
	(0.0403)	(0.0306)	(0.435)	(0.808)
$lifeInsu{r}^2$	-	-	−0.0482***	−0.0765***
	-	-	(0.0117)	(0.0181)
$nonlifeInsu{r}^2$	-	-	−0.0422*	−0.0907*
	-	-	(0.0211)	(0.0376)
N.obs	144	160	144	160
N instruments	14	23	16	25
AR (2) (P-value)	0.1081	0.0110	0.6615	0.1538
Sargan Test (P-value)	0.0921	0.6311	0.1255	0.8717

Notes: We report tests for second-order serial correlation (AR-2) and instrument validity (Sargan). Standard errors are in parentheses. *, **, and *** significant at 10 percent, 5 percent, and 1 percent.

Table 3. Results of panel data models (Total insurance penetration)

	Model 5		Model 6
	Arellano-Bond	Arellano-Bover/Blundell-Bond	Arellano-Bond	Arellano-Bover/Blundell-Bond
$Intercept$	−10.17***	0.0804	−10.46***	−0.0286
	(0.705)	(0.797)	(0.649)	(0.912)
$GDP\left(-1\right)$	0.281***	0.754***	0.281***	0.749***
	(0.0383)	(0.0402)	(0.0393)	(0.0506)
$Capital$	0.674***	0.0965**	0.684***	0.103*
	(0.0178)	(0.0347)	(0.0158)	(0.0415)
$Labor$	0.00637***	0.0159***	0.00594***	0.0161***
	(0.000994)	(0.00274)	(0.00107)	(0.00274)
$IP$	−0.0659***	−0.0211***	−0.0284	−0.0491
	(0.0197)	(0.00368)	(0.0215)	(0.0369)
$I{P}^2$	-	-	−0.00719	0.00731
	-	-	(0.00559)	(0.00763)
N.obs	144	160	144	160
N instruments	13	22	14	23
AR (2) (P-value)	0.1979	0.0050	0.1439	0.0039
Sargan Test (P-value)	0.1470	0.6051	0.1364	0.6076

Notes: We report tests for second-order serial correlation (AR-2) and instrument validity (Sargan). Standard errors are in parentheses. *, **, and *** significant at 10 percent, 5 percent, and 1 percent.

Table A1. List of countries considered in the panel

Country	Code	Freq.	Percent	Cum.
AUSTRIA	AUS	11	6.25	6.25
BELGIUM	BEL	11	6.25	12.50
CANADA	CAN	11	6.25	18.75
SWITZERLAND	CHE	11	6.25	25.00
GERMANY	DEU	11	6.25	31.25
DENMARK	DNK	11	6.25	37.50
SPAIN	ESP	11	6.25	43.75
FRANCE	FRA	11	6.25	50.00
UNITED KINGDOM	GBR	11	6.25	56.25
ITALY	ITA	11	6.25	62.50
KOREA, Rep	KOR	11	6.25	68.75
NETHERLANDS	NLD	11	6.25	75.00
NORWAY	NOR	11	6.25	81.25
POLAND	POL	11	6.25	87.50
SWEDEN	SWE	11	6.25	93.75
UNITED STATES	USA	11	6.25	100.00
Total		176	100.00

Summary of the main variables in logarithm

Variable	Mean	Std.	dev.	Min	Max	Observations
Log GDP
overall	10.706	0.454	9.353	11.551	N	=	176
between	0.458	9.449	11.360	n	=	16
within	0.087	10.433	10.897	T	=	11
Labor
overall	16.495	1.074	14.771	18.935	N	=	176
between	1.105	14.813	18.895	n	=	16
within	0.028	16.419	16.579	T	=	11
Investment
overall	26.371	0.959	24.840	29.064	N	=	176
between	0.982	24.960	28.903	n	=	16
within	0.103	26.019	26.637	T	=	11
Total Insurance
overall	10.699	1.298	8.813	14.389	N	=	176
between	1.326	8.994	14.220	n	=	16
within	0.167	10.117	11.369	T	=	11
Life Insurance
overall	10.827	1.237	8.451	13.909	N	=	176
between	1.242	8.940	13.769	n	=	16
within	0.274	9.845	12.817	T	=	11
Non life
overall	10.699	1.298	8.813	14.389	N	=	176
between	1.326	8.994	14.220	n	=	16
within	0.167	10.117	11.369	T	=	11