Browsing by Author "Kahase, G/Michael"

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    Ethiopian Insurance sector and its Contribution to Economic Growth
    (Addis Ababa University, 2018-01) Kahase, G/Michael; Mahari, Mekonnen (PhD)
    The study examines the contribution of Ethiopian Insurance industry to the economic growth. It analyses both the long run and short run dynamics among important determinants of variables over the period 37 years (1980-2016). Using unit root tests and Johansen Co integration tests are applied to investigate relationship among the variables respecting. Error correction model has been used to analysis the long run and short run movements of variables. A pair wise granger causality test has also used to examine the causal relationship among the variables in the model. The study observed that there is long run relationship between insurance development and economic growth in Ethiopia. The regression result indicated that insurance premium and insurance claim has significant and negative relationship with economic growth in the long run and short run dynamics. However insurance profit has positive significant and insurance investment has positive but insignificant relation with economic growth. The result of granger causality test indicates that there is unidirectional relationship from economic growth to insurance premium, insurance claim and insurance profit. It also shows bidirectional relationship between economic growth and insurance profit. However insurance investment has no causal relation with any variable in short run. The implication of this finding is that there is a causal relationship between insurance performance and economic growth. The study concludes that the economic growth has positive impacts on the growth of insurance development.