The impact of insurance penetration on the entrepreneurial space in selected countries

Shah Abadi, A.; Mehdipur, F.; Moradi, A.

doi:10.22056/ijir.2020.03.02

Document Type : Original Research Paper

Authors

¹ Department of Economics, Faculty of Social and Economic Sciences, Al-Zahra University, Tehran, Iran

² Department of Business Management, Islamic Azad University, Electronic Department, Tehran, Iran

³ Department of Economic Sciences, Islamic Azad University, Arak Branch, Iran

https://doi.org/10.22056/ijir.2020.03.02

Abstract

Objective: The risk inherent in entrepreneurial activities and the problem of financing the field of entrepreneurship are two major challenges for the development of the entrepreneurial environment. However, the development of the insurance industry as a central institution for reducing financial risk on the one hand and as an investment institution on the other hand can help to solve these two challenges.
Methodology: This research has estimated the effect of the insurance penetration rate on the entrepreneurship environment in two groups of selected developing and developed countries during the period of 2013-2018 with the approach of panel data and the method of generalized moments.
Findings: The results showed that the effect of insurance penetration on the entrepreneurial climate in both groups of selected countries is positive and significant. Also, the influence of control variables including human capital, research and development, economic freedom, information and communication technology, and financial development on the entrepreneurial atmosphere in both groups of selected countries is positive and significant.
Conclusion: Increasing the share of insurance in the economy of selected countries has helped to improve the entrepreneurial environment. Therefore, increasing the penetration rate of insurance as a solution for the development of the entrepreneurial environment should be considered by macroeconomic policy makers in selected countries.

Keywords

References

امیدی، وحید.، شاه‌آبادی، ابوالفضل و مهرگان، نادر. (1397). اثر سرریز دانش و کیفیت نهادی بر رشد نوآوری در کشورهای منتخب سازمان همکاری اسلامی. فصلنامه مدیریت توسعه فناوری، 6(4): 30-9.

باغستانی میبدی، مسعود و جعفری فشارکی، نگار. (1394). نقش صنعت بیمه در بهبود فضای کسب‌وکار در ایران. مجله اقتصادی، 15(1): 112-95.

بالتاجی، بدی. (1393). اقتصادسنجی. ترجمه رضا طالبلو و شعله باقری پورمهر. تهران: نشر نی، چاپ دوم.

جهانی، فرزانه و دهقانی، علی. (1394). تأثیر گسترش صنعت بیمه بر رشد اقتصادی کشورهای منطقه منا (طی دوره ۲۰۱۰- ۱۹۹۷). فصلنامه اقتصاد مالی، 9(32): 138-123.

چراتیان، ایمان و قربانی، سعید. (1393). تحلیل آثار سیاست‌های پولی و مالی بر کارآفرینی(با تأکید بر بخش زنان). فصلنامه توسعه کارآفرینی، 7(4): 793-773.

حسن‌زاده، علی و کاظم‌نژاد، مهدی. (1387). مروری بر نقش بیمه در اقتصاد و بازار سرمایه ایران و برخی از کشورهای در حال توسعه و توسعه یافته. فصلنامه صنعت بیمه، 1(4-3): 269-231.

زیوری، امینه.، محمدی خیاره، محسن و مظهری، رضا. (1398). تاثیر دسترسی به منابع مالی بر فعالیت‌های‌ کارآفرینانه: مقایسه کشورهای منتخب توسعه‌یافته و در حال توسعه. فصلنامه توسعه کارآفرینی، 12(4): 580-561.

شیرکوند، سعید. (1391). سازمان‌های پولی و مالی. انتشارات کویر، چاپ اول.

فرامرزپور دارزینی، بیتا و خاندان، نسرین. (1387). نقش واحد R&D بر کارآفرینی و ارزش افزوده بنگاه‌های کوچک و متوسط. فصلنامه رشد فناوری، 4(14): 46-34.

مبینی دهکردی، علی.، علایی کرهرودی، حسین و زین ساز، علی. (1398). تأثیر صنعت بیمه در توسعه فعالیت‌های کارآفرینی (مطالعه موردی شرکت بیمه ملت). فصلنامه راهبردهای بازنشستگی، 1(2): 29-19.

میرزایی، امیر.، حسنی، محمد و نورالدینی، سیدصدرالدین. (1392). اثر شاخص‌های مهم بیمه‌ای بر رشد اقتصادی در کشورهای عضو اوپک با استفاده از مدل پانل پویا به روش GMM. پژوهشنامهبیمه، 29(1): 22-1.

Aidis, R., Estrin, S. & Mickiewicz, T. (2008). Institutions and entrepreneurship development in Russia: A comparative perspective. Journal of Business Venturing, 23(6): 656-672.

Arellano, M. Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies,58(2): 277-297.

Baltagi, B. (2008). Econometric analysis of panel data. John Wiley & Sons.

Baptista, R., Karaoz, M. & Mendonca, J. (2014). The impact of human capital on the early success of necessity versus opportunity-based entrepreneurs. Small Business Economics, 42(4): 831-847.

Bastian, B. & Zali, M. R. (2016). The impact of institutional quality on social networks and performance of entrepreneurs. Small Enterprise Research, 23(2): 151-171.

Berg, H. V. D. & Schmidt, J. R. (1994). Foreign trade and economic growth: Time series evidence from Latin America. The Journal of International Trade and Economic Development: An International and Comparative Review, 3(3): 249 - 268.

Bianchi, M. (2012). Financial development, entrepreneurship, and job satisfaction. The Review of Economics and Statistics, 94(1): 273-286.

Blundell, R. & Bond, S. (2000). GMM estimation with persistent panel data: An application to production functions. Econometric Reviews, 19(3): 321–340.

Cramer, J.S., Hartog, J., Jonker, N. & Van Praag, C. M. (2002). Low risk aversion encourages the choice for entrepreneurship: An empirical test of a truism. Journal of Economic Behavior and Organization, 48(1): 29-36.

Estrin, S., Mickiewicz, T. & Stephan, U. (2016). Human capital in social and commercial entrepreneurship. Journal of Business Venturing, 31(4): 449–467.

Griliches, Z. (1988). Productivity puzzles and R&D: another non-explanation. Journal of Economic Perspectives, 2(4): 9-21.

Harrison, R. T., Cooper, S. Y. & Mason, C. M. (2004). Entrepreneurial activity and the dynamics of technology-based cluster development: the case of Ottawa, Urban Studies, 41(5/6): 1045-1070.

Isenberg, D. (2011). The entrepreneurship ecosystem strategy as a new paradigm for economic policy: principles for cultivating entrepreneurship. Babson Park, MA: Babson Entrepreneurship Ecosystem Project, Babson College.

Jiang, L., Tong, A., Hu, Z. & Wang, Y. (2019). The impact of the inclusive financial development index on farmer entrepreneurship. PLoS One, 14(5): 1-21.

Kanyi Wamuyu, P. (2015). The impact of information and communication technology adoption and diffusion on technology entrepreneurship in developing countries: The case of Kenya.Journal Information Technology for Development, 21(2): 253-280.

Kar, M. & Özsahin. S. (2016). Role of financial development on entrepreneurship in the Emerging Market Economies. Eskişehir Osmangazi University Journal of Economics and Administrative Sciences, 11(3): 131-152.

Kerr, W. R. & Nanda, R. (2009). Financing constraints and entrepreneurship. Harvard Business School - Entrepreneurial Management Working Paper No. 10-013.

Masci, P. (2013). Insurance market development and entrepreneurship, with a focus on Latin America and Brazil. George Mason University.

Masci, P. (2012). Insurance and entrepreneurship: A conceptual framework. Business and Public Administration Studies, 7(1): 23-40.

Peleckienė, V., Peleckis, K., Dudzevičiūtė, G. & Peleckis, K. K. (2019). The relationship between insurance and economic growth: evidence from the European Union countries. Economic Research-Ekonomska Istraživanja, 32(1): 1138-1151.

Roed, K. & Skogstrøm, J. F. (2013). Unemployment insurance and entrepreneurship. Discussion Paper No. 7121.

Schumpeter, J. A. (1934). The theory of economic development. Harvard University Press.

Sobel, R. S. (2008). Testing Baumol: Institutional quality and the productivity of entrepreneurship. Journal of Business Venturing, 23(6): 641-655.

Soo, H. H. (1996). Life insurance and economic growth: theoretical and empirical investigation. University of Nebraska.

Sraer, D., Thesmar, D., Schoar, A. & Hombert, J. (2014). Can unemployment insurance spur entrepreneurial activity? Working Paper 2017, National Bureau of Economic Research, Inc.

Stam, E. & Wennberg, C. (2009). The roles of R&D in new firm growth. Small Business Economics, 33(1): 77-89.

Tipu, S. & Arain, F. M. (2011). Managing success factors in entrepreneurial ventures: A behavioral approach. International Journal of Entrepreneurial Behaviour and Research, 17(5): 534-560.

Torrini, R. (2005). Cross-country differences in self-employment rates: The role of institutions. Labour Economics Journal, 12(5): 661-683.

Wujung, V. A. & Fonchamnyo, D. C. (2016). The role of financial development on private entrepreneurship in Cameroon. Journal of Economics and Sustainable Development, 7(21): 118-124.

Letters to Editor

IJIR Journal welcomes letters to the editor for the post-publication discussions and corrections which allows debate post publication on its site, through the Letters to Editor. Letters pertaining to manuscript published in IJIR should be sent to the editorial office of IJIR within three months of either online publication or before printed publication, except for critiques of original research. Following points are to be considering before sending the letters (comments) to the editor.

[1] Letters that include statements of statistics, facts, research, or theories should include appropriate references, although more than three are discouraged.

[2] Letters that are personal attacks on an author rather than thoughtful criticism of the author’s ideas will not be considered for publication.

[3] Letters can be no more than 300 words in length.

[4] Letter writers should include a statement at the beginning of the letter stating that it is being submitted either for publication or not.

[5] Anonymous letters will not be considered.

[6] Letter writers must include their city and state of residence or work.

[7] Letters will be edited for clarity and length.

Name *

Email Address *

Affiliation *

Comments *

Security Code *

Iranian Journal of Insurance Research

The impact of insurance penetration on the entrepreneurial space in selected countries

References

References

Letters to Editor

Send comment about this article

Volume 9, Issue 3 - Serial Number 33
July 2020
Pages 264-279

The impact of insurance penetration on the entrepreneurial space in selected countries

References

References

Letters to Editor

Send comment about this article

Volume 9, Issue 3 - Serial Number 33July 2020Pages 264-279

Volume 9, Issue 3 - Serial Number 33
July 2020
Pages 264-279