ON INSURANCE, ECONOMIC GROWTH AND POPULATION: THE CASE OF TURKEY

Year 2021, Volume: 10 Issue: 2, 39 - 55, 31.12.2021

Aylin Erdoğdu

Abstract

The insurance sector in Turkey has not developed enough. The primary reasons for this are legal issues, income distribution, and consciousness of insurance. When the literature in the field of insurance is examined, it is seen that it points to the importance of economic growth and population. The motivation of this study is to analyze the relationship of insurance with economic development and population. Due to the fact that Turkey has a young population and a growing economy; this research is important in terms of policy making and academic added value.
The methodology includes Stationarity tests, Hodrick Prescott Filter, Vector autoregression model, Impulse Response Function, Vector Error Correction Model along with many other tests. In the analysis, Turkey's gross insurance premium, gross domestic product and population data are used. The research period includes the date range 1983 - 2018. The study findings confirm the short-run and long-run relationship between insurance, economic growth and population in Turkey.
When the literature is examined; It has been determined that most of the studies conducted are about economic growth. Analyzing the effects of both economic growth and population makes the study original. Future research in this area could focus on cross-country analyzes and sub-segments of the insurance market. Thus, it can be stated that they will contribute to the enrichment of the literature by providing resources from different perspectives.

Keywords

Economic Growth, Insurance, Population, Vector autoregression, Vector error correction

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