Foreign direct investment and insurance in developing countries: Beyond the income effect
Sawadogo, Relwendé
Foreign direct investment and insurance in developing countries: Beyond the income effect - 2019.
21
This article studies the impact of FDI inflows on non-life insurance penetration in 76 developing countries over the period 1996–2011. It takes as its basis two effects that are well documented in the literature: (i) that FDI contributes to an increase in income per capita, and (ii) that higher income per capita promotes the development of insurance, especially non-life insurance. The objective of this work is to show that FDI contributes to the development of the insurance sector beyond the income effect. The estimations show that FDI does indeed have this additional effect beyond the income effect, but that its magnitude is conditioned on the legal certainty of contracts and individuals.JEL Codes: G22, F21, O50, O11, C33.
Foreign direct investment and insurance in developing countries: Beyond the income effect - 2019.
21
This article studies the impact of FDI inflows on non-life insurance penetration in 76 developing countries over the period 1996–2011. It takes as its basis two effects that are well documented in the literature: (i) that FDI contributes to an increase in income per capita, and (ii) that higher income per capita promotes the development of insurance, especially non-life insurance. The objective of this work is to show that FDI contributes to the development of the insurance sector beyond the income effect. The estimations show that FDI does indeed have this additional effect beyond the income effect, but that its magnitude is conditioned on the legal certainty of contracts and individuals.JEL Codes: G22, F21, O50, O11, C33.
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