Key finding of the study

The results indicate that developing the life insurance and non-life insurance of surrounding countries creates a spillover impact on the local countries’ economies.

Authors

K.D.U.D. Fernando, Sabaragamuwa University of Sri Lanka

T.M.N. Tharanga, Sabaragamuwa University of Sri Lanka

Narayanage Jayantha Dewasiri, Sabaragamuwa University of Sri Lanka 

Kiran Sood, Chitkara Business School, Chitkara University, India

Simon Grima, University of Malta, Malta

Eleftherios Thalassinos, University of Piraeus, Greece

Summary 

The results indicate that developing the life insurance and non-life insurance of surrounding countries creates a spillover impact on the local countries’ economies. In contrast, institutions have created a reverse spatial spillover impact on local countries. However, life insurance development, moderated through accountability and government effectiveness, has created a spatial spillover between countries. Both life and non-life penetration moderated by the control of corruption and overall institutions have shown a reverse spillover on countries’ economies. This suggests that global governance is a positive-sum game, and monitoring and governance structures have failed at the international level concerning separate countries. Therefore, it is seen that to prevent institutional failure at the state level, good governance and links with the global governance structure could disrupt or energise local institutions.

Published in

Journal of Risk and Financial Management

Link to the article   

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