Impact of Insurance on Economic Growth in Algeria during the Period 1990-2017

Zouaouia Hallam

doi:10.34118/djei.v11i1.116

Zouaouia Hallam University of Sidi Bel Abbes

DOI: https://doi.org/10.34118/djei.v11i1.116

Keywords: Insurance, Economic Growth, Financial Development, Cointegration, FMOLS

Abstract

This paper examines the relationship between insurance sector penetration and economic growth in Algeria from 1990 to 2017. The fully Modified Ordinary Least Squares (FMOLS) was adopted given the different order of integration of the variables of interest. After estimating a growth model. Cointegration test shows a long run relationship to exist among insurance sector, banking, trade openness and inflation rates in Algeria over the period of the study. The long run and the short run dynamics further confirm the positive and significant contribution of insurance on economic growth in Algeria.

The findings of this study have an important place for insurance sector in economy and it also supports the findings obtained in literature.

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