(The) insurance sector development in Korea and Mongolia

Abstract

This study focuses on the two subjects of insurance sector by comparing Korea and Mongolia. First, the author shall analyze investment regulation and asset allocation strategy on the insurance sector of two countries. Secondly, the study shall examine the short-run and long-run relationship between economic growth and growth in the insurance sector in Korea and Mongolia. The sample data covers period from 1984 to 2015 in Korean and 2000 to 2015 for Mongolia. The empirical part of research uses ordinary least square (OLS) method of liner regression model, and Johansen co-integration test under vector error correction model (VECM) environment to evaluate an effect of variables. The result of estimation showed that insurance sector development positively and significant impacts on economic growth in Korea and Mongolia. Lastly, using Korea as a benchmark, the author shall make recommendations on development and restorative regulations of the Mongolia insurance sector.