Essays on insurance-growth nexus In South Africa

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Date

2024

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Publisher

University of the Western Cape

Abstract

The relationship between financial development and economic growth has been a subject of extensive debate in both theoretical and empirical literature. Financial sectors, including banking, capital markets and insurance are generally regarded as important components of economic growth. While banking and capital markets have received significant attention in studies on the finance-growth nexus, the role of the insurance sector has often been underexplored, particularly in developing economies like South Africa. Insurance, by providing risk coverage and encouraging investment, contributes to the strengthening of the financial system and supporting economic development. South Africa is known to have a matured insurance market, however, along with the advanced financial and insurance structures the country continues to have high levels of inequality and unemployment, as well as low levels of economic growth. This study explored the dynamic relationship between the insurance sector and economic growth in South Africa through three distinct essay chapters. The study addressed how insurance impacts financial inclusion, other financial markets, and economic growth in South Africa.

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Keywords

Insurance, Economic Growth, Financial Inclusion, ARDL model, South Africa

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