Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 January 2013 Vol. 2(1), pp 063-070

Copyright © 2013 Global Advanced Research Journals   

 

Original Research Articles

Anaysis of insurance practices and economic growth in Nigeria: using co-integration test and error correction model 

Eze Onyekachi Richard1 and Okoye Victor2 

1Department of Banking and Finance, Ebonyi State University, P.O.Box 053 Abakaliki-Nigeria.

2Department of Banking and Finance, Federal Polytechnic Oko, Anambra State-Nigeria.

*Corresponding Author’s E-mail: ezerich2009@yahoo.ca 

Accepted 22 January 2013 

 

Abstract

The study examines the impact of insurance practice on the growth of Nigerian economy. Insurance premium income, total insurance investment and income of insurance development was used as determinants of insurance practice. We employ unit root tests, Johansen co-integration test and error correction model in data analysis and to determine the short and long run effect of the model. The study observed that the insurance premium capital has significantly impacted on economic growth in Nigeria; that the level of total insurance investment has significantly effected on economic growth in Nigeria; and that there is causal relationship between insurance sector development and economic growth in Nigeria. The implication of these findings is that insurance industry would contribute meaningful to the growth of Nigeria economy in long run. The study concludes that there is a significant positive effect of insurance practice on the growth of Nigerian economy. We therefore recommend that having seen that there is long-run relationship between insurance industry practice and economic growth in Nigeria. There is need that more efforts should be made to increase transparency and efficiency in insurance industry through adequate legislation and policy formulation targeted at providing institutional improvement, especially in risk management and product innovations in insurance industry. 

Keyword: Insurance, Premium, Economic Growth, Practices, ECM.

Related Articles


Original Research Articles
Aminu Umaru, Manu Donga, El Maude Jibreel Gambo and kabiru Musa Yakubu
Relationship Between Crime Level Unemployment Poverty Corruption And Inflation In Nigeria An Empirical Ananlysis
Glo. Adv. Res. J. Manage. Bus. Stud. August 2013 Vol: 2(8): - [Abstract] [Full Text - PDF] (144 KB)
Mehrdad Mohammadnia Sayyed Ahang Kowsar, and Che Fauziah Ishak
Eucalyptus camaldulensis Dehnh. Offers Excellent Potential to Reduce NO3ˉ Concentration in Groundwater
Glo. Adv. Res. J. Manage. Bus. Stud. February 2015 Vol: 1(1): - [Abstract] [Full Text - PDF] (476 KB)
Joerg Wild and Hind Lebdaoui
Stock Market Performance and Economic Growth in Morocco
Glo. Adv. Res. J. Manage. Bus. Stud. May 2014 Vol: 3(5): - [Abstract] [Full Text - PDF] (292 KB)
Review
Sher Ali1, Dr Abdur Rauf, Amjad Ali
The Impact of Globalization on Real Exchange Rate in Pakistan 1980 to 2014
Glo. Adv. Res. J. Manage. Bus. Stud. December 2015 Vol: 4(11): - [Abstract] [Full Text - PDF] (130 KB)
Original Research Articles
Akintayo and Ayodele
Organizational justice and behaviour of human resource in industrial organizations in South West Nigeria
Glo. Adv. Res. J. Manage. Bus. Stud. July 2012 Vol: 1(6): - [Abstract] [Full Text - PDF] (246 KB)
Sudhanva V. Char
Distributive justice: Cognitive Preferences and Jarring Priorities
Glo. Adv. Res. J. Manage. Bus. Stud. May 2016 Vol: 4(3): - [Abstract] [Full Text - PDF] (523 KB)

Current Issue

Viewing Options

View Full Article - PDF
Download Full Article - PDF

Search for Articles

Eze Onyekachi Richard on Google Scholar
Eze Onyekachi Richard on Pubmed
Okoye Victor on Google Scholar
Okoye Victor on Pubmed

Statistics

Viewed 1198
Printed 424
Downloaded 6820
Powered By iPortal Works