ARE THE ECONOMIC DISCONTENT INDEX AND GROWTH EFFECTIVE IN THE INSURANCE SECTOR?

Abstract

The primary purpose of this study is to investigate the economic discontent index, which expresses the sum of inflation and unemployment rates and the effect of economic growth on the insurance sector through the sample of Turkey. According to the results obtained from the linear ARDL method applied using annual data for the period 1992-2020: i) Economic discontent index, economic growth, and the insurance sector are co-integrated; their linear combinations converge to the equilibrium point ii) in the long run, when the economy grows by 1%, the insurance sector will expand by about 0.15%; A 1% increase in the economic discontent index will reduce the insurance sector by 0.02% iii) It has been determined that the coefficients in the short run are weaker than those in the long run. According to the causality test results: iv) from the economic discontent index to the insurance sector; one-way causality relationships have been determined from economic growth to the insurance sector and economic discontent index.