June 4, 2026Financial Economics فصلنامه اقتصاد مالیOpen Access
Causal Relationship Analysis Between Insurance Sector Development and Economic Growth with an Emphasis on the Mediating Role of Financial Development in Iran (A Long-Term and Short-Term Approach)
Causal analysis reveals financial development mediates insurance's long-term impact on economic growth.
Key Points
This research investigates the causal relationships between insurance sector development and economic growth in Iran, emphasizing financial development as a mediating variable.
Analyzed annual data from 2001 to 2023 using an autoregressive distributed lag econometric model.
Utilized an error correction model to assess both short-term and long-term relationships.
Long-term insurance sector development positively impacts economic growth significantly.
Short-term effects are weak and occasionally insignificant.
Financial development enhances the effectiveness of insurance development on economic growth.