DO INSURANCE MARKET ACTIVITIES PROMOTE economic process IN NIGERIA? proof FROM VECTOR ERROR CORRECTI

Abstract

This study examined the dynamic relationships between insurance market activities, and economic process in Nigeria exploitation the Johansen approach to cointegration analysis, Vector Error Correction Model (VECM), and farmer relation take a look at on yearly information over the amount 1985 to 2017. The results show that total premium (life and non-life) to nominal gross domestic product exerts positive and vital relationship with real gross domestic product within the long haul. Insurance Density exerts a negative and vital relationship on real gross domestic product. within the short run, the results of farmer relation as indicates that there's a weak unifacial relation running from, insurance density to real gross domestic product. The study established a weak relationship between insurance development and growth in Nigeria. The study recommends the requirement to determine money establishments that might strengthen and resolve the institutional and structural issues within the economy and build structures that might sustain different causative factors that mediates growth and money intercession (insurance side) wherever applicable.

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