THE IMPORTANCE OF INSURANCE COMPANIES FOR THE CAPITAL MARKET DEVELOPMENT AND ECONOMIC GROWTH IN NORTH MACEDONIA
THE IMPORTANCE OF INSURANCE COMPANIES FOR THE CAPITAL MARKET DEVELOPMENT AND ECONOMIC GROWTH IN NORTH MACEDONIA

Summary/Abstract: In this paper, through regression analysis the effect of the insurance sector on the economic growth and the capital market in N. Macedonia was analyzed for the period 2014-2022. The main variables used in the analysis were GDP, Stock Market Capitalization, Bond Market Capitalization and Assets of Insurance Companies. Hence, considering the participation of 1.54% of the insurance sector in the N. Macedonian GDP, as well as the asset allocation of the insurance companies, the obtained results were according to the expectations. On one hand, the insurance companies showed negative effect on GDP, which may be due to the very low participation in the total GDP, but they showed positive effect on the stock market capitalization. Additionally, bidirectional causality with positive effect was determined between the GDP and Stock Market Capitalization

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