ANALYSIS OF THE IMPACT OF INSURANCE SECTOR ON TOTAL INVESTMENTS IN ROMANIA

This paper is mainly focused on a key topic of economic literature, respectively the link between insurance instruments and total investments at macroeconomic level. Thus, the study includes the analysis and evaluation of the effects of insurance instruments on the real growth rate of investments in the economic context of Romania. The analysis was made by approaching different models and econometric tests, respectively by using the auto-regressive vector / autoregressive vector with correction, which surprised the effect of the three selected indicators: gross written premiums related to life / general and total insurance, on the real growth rate of the total amount of investments. The research hypothesis for starting the analysis is that the insurance instruments have a significant economic potential in the Romanian economy, with a high impact on the investment environment, depending on the instrument used in the promotion process of the entrepreneurship. Following the analysis of the econometric model’ results and tests, the initial formulated hypothesis was validated by generally obtaining a positive effect given by the insurance instruments on investment real growth. Also, the econometric cointegration and causality tests supported the results obtained from the run of the autoregressive vector models. The results of the study are important as it forms a concrete basis for developing recommendations for the use of these instruments in stimulating investments as well as for the economic potential that this sector has on the financial market in Romania.