Proceedings of the 19th International Academic Conference, Florence

THE INTERACTION BETWEEN INSURANCE SECTOR AND ECONOMIC GROWTH: TURKISH CASE*

HAKKI CIFTCI, ERHAN ISCAN, DUYGU SERIN

Abstract:

The insurance sector has great importance for modern society. Insurance sector is one of the most important financial institutions in the financial system that affects the economic growth with the remarkable assets. Especially since the 1950s, the insurance sector has high growth rates. From the end of the 19th century, effects of the financial institutions on economic growth are studied in-depth in the literature. The results of many studies showed that impact of financial institutions on economic growth is significant. However, the literature on the role of the insurance sector on economic growth in comparison with the role of the banks on economic growth has not been studied very much. The main objective of this study is to investigate the interaction between the Turkish insurance sector and economic growth. In this study, the development of the Turkish insurance sector and influence of insurance sector on economic growth will be studied. Afterwards using the methods of time series analysis, the interaction between the size of the Turkish insurance sector and economic growth will be investigated. Findings from the study will provide us important information about the details of the interaction between insurance sector and economic growth. Basic contribution of this work is to provide useful information about the details of this interaction to policy-makers and agents for effective decision-making. Further analysis of this interaction will emphasize the importance of the insurance sector for economic growth.

Keywords: Insurance, Economic Growth, Insurance Premium, Turkish Insurance Sector

DOI: 10.20472/IAC.2015.019.028

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