Document Type : ORIGINAL ARTICLE
Authors
1 Insurance Research Center
2 Imam sadegh Univercity. Tehran. Iran
3 Imam Sadegh univercity. Tehran. Iran
Abstract
Abstract:
This study aims to examine the impact of insurers’ investments on gross fixed capital formation (GFCF) in Iran. In this research, data are quarterly (semi-annual, i.e., every six months) for the period 1389–1402 (2010–2023) and analyzed using an autoregressive distributed lag (ARDL) model with distributed lags. The results indicate a long-run relationship among the variables, showing that insurers’ investments in long-term bank deposits, long-term investments, and high-turnover market investments positively and significantly enhance GFCF, while inflation, the exchange rate, and the price of gold have negative effects; notably, a one-percent rise in inflation is associated with a substantial decrease in GFCF. The study also emphasizes that the coefficient of determination is about 99%, indicating a high explanatory power of the model. Based on these findings, it can be concluded that the insurance sector can strengthen the country’s economic growth through higher GFCF, and it is recommended to direct insurance investments toward higher-yield assets, develop life insurance, boost sector competitiveness, and have the government implement supportive policies to improve the investment environment. Additionally, controlling inflation and reducing macroeconomic risks are essential to enhance the positive impact of the insurance sector on the economy..
Keywords: ARDL Modelو Gross Fixed Capital Formation, Insurance, Money and Capital Market.
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