The relationship between insurance development and economic growth in the Philippines using vector autoregression and vector error correction models

Added Title

The relationship of economic growth and insurance development in the Philippines using vector autoregressive and vector error correction models

Date of Publication

2016

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Statistics Major in Actuarial Science

Subject Categories

Statistics and Probability

College

College of Science

Department/Unit

Mathematics and Statistics

Thesis Adviser

Regina Tresvalles

Abstract/Summary

For years, researchers have been interested in what kind of relationship can be found between insurance development and economic growth. The Philippines has been part of a few studies that used panel data analysis or cross country analysis. However, there has been no known study that mainly focuses on the Philippines alone. Thus, it is found necessary to examine the relationship of insurance development and economic growth for the Philippine setting. This study identified the long run and short run relationship between economic growth and insurance development in the Philippines over the period 1996-2014. Factor analysis was used to identify one factor for economic growth and two factors for insurance development. According to the results of Johansen's Co-integration Test, there is a long run relationship among the three factors. Since there is a co-integrating relationship, the vector error correction model was adopted. The results revealed that there is a long run causality running from Eco11 and Ins22 to Ins13. It also suggested that there is a short run causality running from Eco11 to Ins13, and from Ins22 to Ins13. The findings suggest that the economic growth affects insurance development both in the long run and short run.

Abstract Format

html

Note

Title on container: The relationship of economic growth and insurance development in the Philippines using vector autoregressive and vector error correction models.

Language

English

Format

Electronic

Accession Number

CDTU021089

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

1 computer disc ; 4 3/4 in.

Keywords

Insurance--Philippines; Economic development--Philippines; Cointegration--Philippines; Vector fields; Vector analysis

Embargo Period

5-12-2021

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