Romanian Journal of Economic Forecasting
ISSN 1582-6163 & E-ISSN: 2537-6071
Impact Factor: 1.0
5-Year Impact Factor: 1.0
(© Journal Citation Reports 2023, Published by Clarivate Analytics)
Abstract: This study reexamines the relationship between insurance activities and economic growth in China, employing both the Quantile approach and the Quantile-on-Quantile approach, which have rarely been used in the previous studies. It is identified that economic growth generally contains causal impacts on life/non-life insurance activities, and a feedback causal relation is identified at 0.1~0.5 quantiles. Results from Quantile_on_Quantile approach give more details about the causal relation of the nexus and find the relation varying at different quantiles. Furthermore, interest rate is found to affect the causal relations significantly. Our empirical results contain important implications for insurance policy making and insurance firm management in China.
Keywords: Insurance activities, economic growth, quantile approach, Quantile_on_Quantile approach, Granger causality.
JEL codes: C22.