Non-Life Insurance and Economic Growth: the Case of Bosnia and Herzegovina

Abstract

Vector autoregressive (VARX) models with exogenous variable are commonly used for macroeconomic analyses. They can also be used for examining the relation between non-life insurance and other macroeconomic parameters. Tis model has been applied on examining the relation between non-life insurance and economic growth in the case of Bosnia and Herzegovina. The use of this methodology has confirmed the expectation that in the case of Bosnia and Herzegovina non-life insurance has positive impact on economic growth in the short-run.

Keywords

• non-life insurance premiums
• GDP
• M2
• vector autoregressive model with exogenous variable