Original scientific paper
DETERMINANTS OF NONLIFE INSURANCE MARKET ATTRACTIVENESS FOR FOREIGN INVESTMENTS: EASTERN EUROPEAN EVIDENCE
VLADIMIR NJEGOMIR
DRAGAN STOJIĆ
Abstract
The aim of this paper is to investigate
factors that influence the attractiveness
of nonlife insurance market for foreign
insurers in Eastern Europe. We use
country-specific effects models for panel data that
covers fifteen countries during the period 2004-
2009, allowing each cross-sectional unit to have a
different intercept term serving as an unobserved
variable that is potentially correlated with the observed
regressors. The research results indicate
that the main forces affecting market attractiveness
are insurance demand, entry barriers, market
concentration and the return on investment.
These findings provide significant implications
for local governments and for both foreign and
domestic insurers.
Keywords
Globalization; Non-life insurance; Market attractiveness; East Europe
Hrčak ID:
86638
URI
Publication date:
15.6.2012.
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