Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries

This paper examines the influence of legal stability and macroeconomics factor to the non-life insurance development. In light of the growing significance of foreign direct investment (FDI) and trade that stimulate insurance sector, and the stress placed on legal stability of the countries, investig...

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Main Authors: Lee, Hui Shan, Cheng, Fan Fah, Chong, Shyue Chuan, Sia, Bik Kai
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://psasir.upm.edu.my/id/eprint/16016/1/Influence%20of%20macroeconomics%20factors%20and%20legal%20stability%20to%20the%20insurance%20growth%20in%20the%20ASEAN-5%20countries.pdf
http://psasir.upm.edu.my/id/eprint/16016/
http://www.ukm.my/fep/jem/content/2018-2.html
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Institution: Universiti Putra Malaysia
Language: English
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spelling my.upm.eprints.160162019-11-12T06:34:54Z http://psasir.upm.edu.my/id/eprint/16016/ Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries Lee, Hui Shan Cheng, Fan Fah Chong, Shyue Chuan Sia, Bik Kai This paper examines the influence of legal stability and macroeconomics factor to the non-life insurance development. In light of the growing significance of foreign direct investment (FDI) and trade that stimulate insurance sector, and the stress placed on legal stability of the countries, investigating the role of legal stability is crucial to sustain a country’s financial development. This study employs a panel data analysis spanning 20 years in the selected developing countries. The findings suggest that higher trade, higher income, higher stock market trading activities and higher availability of finance credit will enhance the non-life insurance development. Legal stability such as enhancement on the property right and government integrity will improve the non-life insurance development. When the legal environments in emerging countries are more stable, the FDI and stocks market will become more encouraging and stimulate non-life insurance development. The policy makers should improve the legal stability in emerging countries to improve the financial development for minimizing the gap with developed countries. This study includes the institutional factors components in addition to the macroeconomics factors could provide a complete picture towards the improvement of non-life insurance development in emerging and transition countries. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/16016/1/Influence%20of%20macroeconomics%20factors%20and%20legal%20stability%20to%20the%20insurance%20growth%20in%20the%20ASEAN-5%20countries.pdf Lee, Hui Shan and Cheng, Fan Fah and Chong, Shyue Chuan and Sia, Bik Kai (2018) Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries. Jurnal Ekonomi Malaysia, 52 (2). pp. 219-229. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/2018-2.html 10.17576/JEM-2018-5202-18
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description This paper examines the influence of legal stability and macroeconomics factor to the non-life insurance development. In light of the growing significance of foreign direct investment (FDI) and trade that stimulate insurance sector, and the stress placed on legal stability of the countries, investigating the role of legal stability is crucial to sustain a country’s financial development. This study employs a panel data analysis spanning 20 years in the selected developing countries. The findings suggest that higher trade, higher income, higher stock market trading activities and higher availability of finance credit will enhance the non-life insurance development. Legal stability such as enhancement on the property right and government integrity will improve the non-life insurance development. When the legal environments in emerging countries are more stable, the FDI and stocks market will become more encouraging and stimulate non-life insurance development. The policy makers should improve the legal stability in emerging countries to improve the financial development for minimizing the gap with developed countries. This study includes the institutional factors components in addition to the macroeconomics factors could provide a complete picture towards the improvement of non-life insurance development in emerging and transition countries.
format Article
author Lee, Hui Shan
Cheng, Fan Fah
Chong, Shyue Chuan
Sia, Bik Kai
spellingShingle Lee, Hui Shan
Cheng, Fan Fah
Chong, Shyue Chuan
Sia, Bik Kai
Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries
author_facet Lee, Hui Shan
Cheng, Fan Fah
Chong, Shyue Chuan
Sia, Bik Kai
author_sort Lee, Hui Shan
title Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries
title_short Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries
title_full Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries
title_fullStr Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries
title_full_unstemmed Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries
title_sort influence of macroeconomics factors and legal stability to the insurance growth in the asean-5 countries
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2018
url http://psasir.upm.edu.my/id/eprint/16016/1/Influence%20of%20macroeconomics%20factors%20and%20legal%20stability%20to%20the%20insurance%20growth%20in%20the%20ASEAN-5%20countries.pdf
http://psasir.upm.edu.my/id/eprint/16016/
http://www.ukm.my/fep/jem/content/2018-2.html
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