IMPACT OF LIFE INSURANCE DEVELOPMENT ON ECONOMIC GROWTH: A CASE STUDY OF NIGERIA (2000-2022)

Authors

  • OLAJIDE SOLOMON FADUN University of Lagos, Lagos State, Nigeria
  • TAIWO OLARINRE OLUWALEYE Ekiti State University, Ado-Ekiti, Nigeria

DOI:

https://doi.org/10.57233/gujeds.v4i1.11

Keywords:

Life-insurance development, life-insurance penetration, life-insurance density, economic growth, Nigeria

Abstract

This study explored the development of life insurance and economic growth using Nigeria as a case study from 2000 to 2022. The study examined the relationship between life insurance development and economic growth and analysed the effect of life insurance penetration and density on the real GDP growth rate. Data used for the study were collected from sources including the World Development Indicator database, Global Financial Development Indicator database, NIA digest database, and Central Bank of Nigeria statistical bulletin. The investigation approach used the Granger causality test and Autoregressive Distributed Lag (ARDL) co-integration. The Granger causality test result indicated that there is no causal connection between Nigeria's economic growth and the development of life insurance. According to ARDL's estimated results, life insurance density and penetration had a negligible positive effect on the real GDP growth rate. This finding revealed that life insurance development did not contribute to Nigeria’s economic growth from 2000 to 2022. This study recommended, among others, that life insurance institutions should increase their scope of operations to be directly involved in business investments other than financial market investments to enhance their significance level in Nigeria's growth process. 

Author Biographies

OLAJIDE SOLOMON FADUN, University of Lagos, Lagos State, Nigeria

Department of Actuarial Science and Insurance, Faculty of Management Sciences, University of Lagos, Lagos, Nigeria

TAIWO OLARINRE OLUWALEYE, Ekiti State University, Ado-Ekiti, Nigeria

Department of Finance (Insurance Unit), Faculty of Management Sciences, Ekiti State University, Ado-Ekiti, Nigeria

Downloads

Published

2023-12-29

How to Cite

FADUN, O. S., & OLUWALEYE, T. O. (2023). IMPACT OF LIFE INSURANCE DEVELOPMENT ON ECONOMIC GROWTH: A CASE STUDY OF NIGERIA (2000-2022). GUSAU JOURNAL OF ECONOMICS AND DEVELOPMENT STUDIES, 4(1), 162–181. https://doi.org/10.57233/gujeds.v4i1.11