Skip to main content
SpringerLink
Log in

The Non-linear Relationship between Economic and Life Insurance Development in Asia: A Panel Threshold Regression Analysis

  • Conference paper
Computer Science and its Applications

Part of the book series: Lecture Notes in Electrical Engineering ((LNEE,volume 330))

Abstract

This study utilizes a panel threshold regression model to investigate the non-linear relationship between economic and life insurance development in 10 Asian countries from 1979 to 2008. The empirical evidence shows that one optimal threshold level exists. Also, when the GDP is higher than the threshold value, the positive impact of GDP growth on life insurance development is clearly more substantial than that when it is lower than the threshold value. Furthermore, this study verifies that financial development, interest rates and savings positively influence the development of the life insurance market.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 259.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 329.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 329.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Adams, M., Andersson, J., Andersson, L.F., Lindmark, M.: Commercial banking, insurance and economic growth in Sweden between 1830 and 1998. Account. Busi. & Finance History 19(1), 21–38 (2009)

    Article  Google Scholar 

  2. Arena, M.: Does Insurance Market Activity Promote Economic Growth? A Cross-country Study for Industrialized and Developing Countries. J. of Risk and Insurance 75(4), 921–946 (2008)

    Article  Google Scholar 

  3. Beck, T., Webb, I.: Economic Demographic, and Institutional Determinants of Life Insurance Consumption Across Countries. World Bank Eco. Rev 17(1), 51–88 (2003)

    Article  Google Scholar 

  4. Browne, M.J., Kim, K.: An International Analysis of Life Insurance Demand. J. of Risk and Insurance 60(4), 616–634 (1993)

    Article  Google Scholar 

  5. Campbell, R.A.: The Demand for Life Insurance: An Application of the Economics of Uncertainty. J. of Finance 35(5), 1155–1172 (1980)

    Article  Google Scholar 

  6. Davies, R.B.: Hypothesis testing when a nuisance parameter is present only under the alternative. Biometrika 64, 247–254 (1977)

    Article  MATH  MathSciNet  Google Scholar 

  7. Davies, R.B.: Hypothesis testing when a nuisance parameter is present only under the alternative. Biometrika 74, 33–43 (1987)

    MATH  MathSciNet  Google Scholar 

  8. Enz, R.: The S-Curve Relation between Per-Capita Income and Insurance Penetration. The Geneva Papers on Risk and Insurance 25, 396–406 (2000)

    Article  Google Scholar 

  9. Hammond, J.D., Houston, B.D., Melander, R.E.: Determinants of Household Life Insurance Premium Expenditures: An Empirical Investigation. J. of Risk and Insurance 34(3), 397–408 (1967)

    Article  Google Scholar 

  10. Hansen, B.E.: Threshold effects in non-dynamic panels: Estimation, testing and inference. J. of Econometrics 93, 345–368 (1999)

    Article  MATH  Google Scholar 

  11. Headen, R.S., Lee, J.F.: Life Insurance Demand and Household Portfolio Behavior, J. of Risk and Insurance 41(4), 685–698 (1974)

    Article  Google Scholar 

  12. Hwang, T., Greenford, B.: A cross-section analysis of the determinants of life insurance consumption in Mainland China, Hong Kong, and Taiwan. Risk Manage. and Insurance Rev. 18(1), 103–125 (2005)

    Article  Google Scholar 

  13. Jawadi, F., Bruneau, C., Sghaier, N.: Nonlinear Cointegration Relationships Between Non-life Insurance Premiums and Financial Markets. J. of Risk and Insurance 76(3), 753–783 (2009)

    Article  Google Scholar 

  14. Li, D., Moshirian, F., Nguyen, P., Wee, T.: The Demand for Life Insurance in OECD Countries. J. Risk and Insurance 74(3), 637–652 (2007)

    Article  Google Scholar 

  15. Outreville, J.F.: Life Insurance Markets in Developing Countries. J. of Risk and Insurance 63(2), 263–278 (1996)

    Article  Google Scholar 

  16. Ward, D., Zurbruegg, R.: Does Insurance Promote Economic Growth? Evidence from OECD Countries. J. Risk and Insurance. 67(4), 489–506 (2000)

    Article  Google Scholar 

  17. Ward, D., Zurbruegg, R.: Law, Politics and Life Insurance Consumption in Asia. The Geneva Paper on Risk and Insurance 27(3), 395–412 (2002)

    Article  Google Scholar 

  18. Zheng, W., Liu, Y., Dickinson, G.: The Chinese Insurance Market: Estimating its Long-Term Growth and Size. The Geneva Papers 33, 489–506 (2008)

    Google Scholar 

  19. Swiss Re. Sigma, http://www.swissre.com/sigma/

  20. World Development Indicators, http://data.worldbank.org/data-catalog/world-development-indicators

Download references

Author information

Authors and Affiliations

  1. Headquarters of Fox-Electronics Company, Taiwan, R.O. C., Shanghai

    Shing-Ya Yang

  2. Department of Industrial Engineering and Management, Overseas Chinese University, Taiwan. 100, Chiao Kwang Rd., Taichung, Taiwan, R.O. C.

    Hung-An Li

  3. Institute of Taiwanese Literature, National Chung Cheng University, Taiwan. 168, University Rd., Min-Hsiung, Chia-Yi, Taiwan, R.O. C.

    Hui-Chen Fang

Authors
  1. Shing-Ya Yang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hung-An Li
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Hui-Chen Fang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Shing-Ya Yang .

Editor information

Editors and Affiliations

  1. Department of Computer Science and Engineering, Seoul University of Science and Technology (SeoulTech), Seoul, Korea, Republic of (South Korea)

    James J. (Jong Hyuk) Park

  2. School of IT and Engineering, University of Ottawa, Ottawa, Ontario, Canada

    Ivan Stojmenovic

  3. Humanitas College, Kyung Hee University, Seoul, Korea, Republic of (South Korea)

    Hwa Young Jeong

  4. Computer Science & Engineering, Gangneung-Wonju Natioanl University, Wonju, Korea, Republic of (South Korea)

    Gangman Yi

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Yang, SY., Li, HA., Fang, HC. (2015). The Non-linear Relationship between Economic and Life Insurance Development in Asia: A Panel Threshold Regression Analysis. In: Park, J., Stojmenovic, I., Jeong, H., Yi, G. (eds) Computer Science and its Applications. Lecture Notes in Electrical Engineering, vol 330. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-45402-2_179

Download citation

  • DOI: https://doi.org/10.1007/978-3-662-45402-2_179

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-662-45401-5

  • Online ISBN: 978-3-662-45402-2

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation