The relationship between macroeconomic indicators and insurance industry in the provinces of Iran using GMM-SYS method

Considering the important and basic position of the insurance industry in economic growth and development and the effect of economic growth on the development of the insurance industry, in the present study the relationship between macroeconomic indicators and the insurance industry in selected provinces of Iran was investigated. For this purpose, a model consisting of three relationships was designed to explain the relationship between economic growth, insurance density and investment expenditures and was estimated by the generalized method of moments system that among other variables based on theoretical foundations, economic growth was considered a function of insurance density and investment expenditures. Insurance density was considered affected by economic growth and investment expenditures and investment expenditures was also seen as a function of insurance density and economic growth. In general, the results of model estimation indicate that there is a two-way and positive relationship between insurance density, economic growth and investment expenditures.