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


  • Бојан Башкот Central Bank of Bosnia and Herzegovina



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


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.


Download data is not yet available.


Abdul, A. L., & Fiador, V. (2014). Insurance-growth nexus in Ghana: An autoregressive distributed lag bounds cointegration approach. Review of Development Finance, 4 (2), 83–96.

Baskot, B. (2016, October). Exogenous Macroeconomic Shocks and Their Propagation in Bosnia and Herzegovina. Bilateral Assistance and Capacity Building for Central Banks. Geneva.

Beenstock, M., Dickinson, G., & Khajuria, S. (1986). The Determination of Life Premiums: An International Cross-Section analysis 1970-1981. Insurance, Mathematics and Economic, 28, 261-270.

Dizaji, F. S., & Van Bergeijk, P. A. (2013). Potential early phase success and ultimate failure of economic sanctions: A VAR approach with an application to Iran. Journal of Peace Research, 50 (6), 721–736.

Granger, C. W. (1969, August). Investigating Causal Relations by Econometric Models and Cross-spectral Methods. Econometrica, 37, 424-438.

Greene, W. H. (2002). Econometric Analysis. Upper Saddle River, New Jersey: Prentice Hall.

Hyndman, R. J., & Khandakar, Y. (2008, July). Automatic Time Series Forecasting: The forecast Package for R. Journal of Statistical Software, 27(3).

Ilić, M. (2012). An Analysis of Te Relationship Between Insurance Sector Activity and Economic Growth. An Enterprise Odyssey. International Conference Proceedings (pp. 480-493). Zagreb: University of Zagreb, Faculty of Economics and Business.

Kim, S., & Roubini, N. (2000). Exchange rate anomalies in the industrial countries: A solution with a structural VAR approach. Journal of Monetary Economics, 561-585.

Kjosevski, J. (2011). Impact of Insurance on Economic Growth: The Case of Republic of Macedonia. European Journal of Business and Economics, 44 (1), 34-39.

Olayungbo, D. O., & Akinlo, A. E. (2016). Insurance penetration and economic growth in Africa: Dynamic effects analysis using Bayesian TVP-VAR approach. Cogent Economics & Finance, 4 (1).

Outreville, J. Francois, The Relationship between Insurance Growth and Economic Development: 80 Empirical Papers for a Review of the Literature (July 14, 2011).

ICER Working Paper No. 12/2011. Преузето са: SSRN: or

Sax, C., & Steiner, P. (2013, December). Temporal Disaggregation of Time Series. The R Journal, 5/2, 80-87.

Sims, C. A. (1980). Macroeconomics and reality. Econometrica: Journal of the Econometric Society, 1-48.

Solow, R. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 65–94.

Ullah , A., Wan , A. T., & Chaturve, A. ( 2002). Handbook Of Applied Econometrics And Statistical Inference. Boca Raton: CRC Press.

Zouhaier, H. (2014). Insurance and economic growth. Journal of Economics and Sustainable Development, 5(12), 105-112.




How to Cite

Башкот, Б. (2017). Non-Life Insurance and Economic Growth: the Case of Bosnia and Herzegovina. Acta Economica, 15(26), 235–254.



Preliminary Communication