Does Insurance Development Affect the Financial Markets in developing countries?

Abstract : This paper investigates the impact of insurance premiums on stock market development in 37 developing countries over the period 1987-2011. By controlling for the potential endogeneity bias, using the System GMM estimator, we show that the insurance premiums significantly increase the stock market total value traded. This result is robust to the use of alternative measure of stock market development and control of the political and legal system quality. In addition, the results highlight that an improvement in property rights promotes the deepening of the financial market. Thus, the results argue for insurance policies promoting and an improvement of the legal environment to benefit from the financial market development.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [28 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-01178840
Contributor : Cerdi Etudes & Documents - Publications <>
Submitted on : Tuesday, July 21, 2015 - 9:42:43 AM
Last modification on : Thursday, January 11, 2018 - 6:17:17 AM
Long-term archiving on : Thursday, October 22, 2015 - 10:31:34 AM

File

2015.20.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-01178840, version 1

Collections

Citation

Relwende Sawadogo, Samuel Guerineau. Does Insurance Development Affect the Financial Markets in developing countries?. 2015. ⟨halshs-01178840⟩

Share

Metrics

Record views

298

Files downloads

1791