Effects of Life and Non-Life Insurance on Economic Growth in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach

D. O. Olayungbo

Authors

D. O. Olayungbo

Keywords:

life premium, non-life premium, economic growth, co-integration, ARDL, nigeria

Abstract

This paper investigates separately the effects of life and non-life insurance on economic growth in Nigeria from 1976 to 2013. The Autoregressive Distributed lags (ARDL) was adopted given the different order of integration of the variables of interest. After estimating a growth model, the bound test shows a long run relationship to exist among economic life, non-life insurance and economic growth in Nigeria over the period of study. The long run and the short run dynamics further confirms the positive and significant contribution of life and non-life insurance on economic growth in Nigeria. The paper concludes that life and non-life insurance acts as complements to economic growth in Nigeria rather substitutes.

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How to Cite

Effects of Life and Non-Life Insurance on Economic Growth in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach. (2016). Global Journal of Management and Business Research, 15(C11), 33-40. https://journalofbusiness.org/index.php/GJMBR/article/view/1868

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(null) Supplemental Information 1: Comparing the performance of Akaike information criteria versus likelihood ratio tests to discriminate between Brownian Motion and Ornstein-Uhlenbeck models.