Asymmetric impacts of insurance premiums on the non-oil GDP: some new empirical evidence. Issue 12 (8th March 2020)

• Record Type: Journal Article
• Authors: Hemrit, Wael; Benlagha, Noureddine
• Is Part Of: Applied economics. Volume 52:Issue 12(2020)
• Page Start: 1363
• Page End: 1376
• Publication Date: 2020-03-08
• Subjects: Insurance premiums -- non-oil GDP -- NARDL; G22 -- C14 -- P24; Economics -- Periodicals; 330
• DOI: 10.1080/00036846.2019.1673300
• Languages: English
• ISSNs: 0003-6846

Abstract

ABSTRACT: In this paper, we study the influence of insurance premium on the non-oil gross domestic product in Saudi Arabia. We implement the nonlinear autoregressive distributed lags. The results show that the relationships between insurance premiums and non-oil gross domestic product manifest a nonlinear behaviour. In other words, insurance premiums via positive and negative shocks lead to an increase of growth in the non-oil sector in the long term, whereas the lagged level shocks negatively affect the non-oil GDP in the short run. In addition, the examination of the multiplier effect suggests that positive cumulative changes in insurance premiums and inflation can effect much larger changes in non-oil GDP, while shocks in government spending have a symmetric effect on non-oil GDP growth.