The Non-linear Relationship between Economic and Life Insurance Development in Asia: A Panel Threshold Regression Analysis

摘要

This study utilizes a panel threshold regression model to investigate the non-linear relationship between economic and life insurance development in 10 Asian countries from 1979 to 2008. The empirical evidence shows that one optimal threshold level exists. Also, when the GDP is higher than the threshold value, the positive impact of GDP growth on life insurance development is clearly more substantial than that when it is lower than the threshold value. Furthermore, this study verifies that financial development, interest rates and savings positively influence the development of the life insurance market.