This study analyzed both the long and short run relationship between insurance development and\r\neconomic growth in Nigeria over the period 1986 to 2010. Using error correction model (ECM), the study\r\nfinds that insurance development cointegrated with economic growth in Nigeria. That is there is long\r\nrun relationship between insurance development and economic growth in Nigeria. The results also\r\nshows that physical capital and interest rate both at contemporary and one lagged value has significant\r\npositive effect on economic growth in Nigeria while physical capital and inflation has negative long run\r\nrelationship with economic growth. The results of this study generally indicate statistically significance\r\ncontribution of insurance to economic growth in Nigeria.
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