International Journal of Management and Business Studies

International Journal of Management and Business Studies ISSN 2167-0439 Vol. 13 (7), pp. 001-011, July, 2024. Available online at www.internationalscholarsjournals.org © International Scholars Journals

Full Length Research Paper

Evaluating the Impact of Insurance on Economic Growth in West African Monetary Union Countries: A Dynamic Panel Data Study

Jean-Claude Sourou Keke and Wilfried Pkêdonou Houedokou

Economist, Centre for Development Policy Analysis (CDPA)
Research Assistant, Centre for Development Policy Analysis (CDPA)

Accepted 03 May, 2022

This communication is intended to analyze the contribution of insurance to economicc growth in WAEMU countries using panel data over the period 1999-2009. Indeed, few studies havve investigated the contribution of this sector to economiic growth in the WAEMU. The LSDVC’s method proposed by Bruno (2005), adopted in this study is betteer than the Generalized Method of Moments (GMM) for estimating dynamic panels when the sample size is small. It appears that the stimulation of insurance including life ensures a level of growth in the WAEMMU. In addition, comparative analysis with the Economic Community and Monetary of Central Africa (ECMCA) shows that life insurance has a positive and insignificant in WAEMU and ECMCA, while non-life insurance has the opposite effect in both areas. With this result, some actions be undertaken to improove this sector's contribution to economic growwth in the WAEMU. Thus, the study suggests: i) draw lesssons from the best South African experience to offer new products tailored to the needs of populations in terms of guarantees, distribution or ease of access and price tailored ii) develop strategies to increaase market shares of countries in the WAEMU coountries, with action for the progressive conquest of part off the population that has not yet subscribed to innsurance other than the service "car insurance” and iii) help the actors to work towards the promotion of life insurance guarantee for the future development of the insurance on the one hand and the outtbreak of insurance companies in the agricultural sector because this sector contributes much Econoomic growth in EU countries.

Keywords: Growth, dynamic panels, Insuurance, market, financial intermediation

JEL Classification: E23, C33, G22, G21