Research On The Influence Of Insurance Development On Total Factor Productivity Of Enterprises

In the past 40 years,the insurance industry and China's economy and society have promoted coordinated development simultaneously.On the one hand,they benefited from the rapid development of the country's economy and society and the superiority of the socialist market economic system;On the other hand,thanks to the improvement of people's living standards and deepening understanding of insurance,the contribution of insurance to China's economy is increasing day by day.Insurance plays an increasingly important role in resisting risks,maintaining economic and financial stability,improving the total factor productivity of enterprises,and enhancing social welfare.Premier Li Keqiang clearly pointed out in the "Government Work Report of the State Council in 2020":"Improve the total factor productivity,focus on accelerating the construction of an industrial system with the coordinated development of the real economy,technological innovation,modern finance and human resources,and strive to build an effective market mechanism and a dynamic micro-subject.The economic system with strong macroeconomic regulation and control will continuously enhance China's economic innovation and competitiveness." In the past 40 years of reform and opening up,although the overall level of total factor productivity of enterprises has improved to a certain extent,the innovation ability of enterprises is not strong,and the investment combination of capital-labor and other factors needs to be optimized,which leads to the unsatisfactory growth rate of total factor productivity of Chinese enterprises,and there is still a certain gap compared with developed industrialized countries such as Germany and Japan.Under this background,how to effectively improve the total factor productivity of enterprises has become the focus of attention from all walks of life.At present,the academic circles have conducted extensive and in-depth research on the driving force of enterprise total factor productivity and the function of insurance.However,the existing literature is very scarce to understand the growth of enterprise total factor productivity from the perspective of insurance development.In particular,does the development of regional insurance industry affect enterprise total factor productivity?What mechanism does the development of insurance industry exert on the total factor productivity of enterprises?All these questions need to be answered urgently.Based on the consideration of the above problems,this paper studies the above problems from two levels:theoretical analysis and empirical test.At the theoretical analysis level,firstly,the paper innovatively brings the industrial agglomeration theory and financing constraint theory into the analysis framework,which provides a theoretical explanation for the productivity effect of regional insurance development.Secondly,based on the theory of technological innovation and principal-agent theory,it provides a micro-theoretical basis for the analysis of the transmission mechanism of enterprises to purchase insurance to improve total factor productivity.Thirdly,from the measurement of total factor productivity and the study of influencing factors,the macro measurement of total factor productivity is turned to micro,and the influence of external environmental factors and internal factors on productivity is studied,which provides some theoretical support for studying the productivity effect of insurance.At the level of empirical test,this paper calculates the total factor productivity of China's industrial enterprises by using the database of China's industrial enterprises,China Insurance Yearbook,China Patent Database,the data of the sixth national census,the administrative division code table of the National Bureau of Statistics,and the financial statistics of cities and counties in China,drawing on the calculation method of Ackerberg et al.(2015)to calculate the total factor productivity of China's industrial enterprises,and examines how the development of regional insurance industry determines the total factor productivity of enterprises and how insurance purchases affect the total factor productivity of enterprises.Empirical studies show that:First,the development of regional insurance industry can significantly promote the improvement of total factor productivity of enterprises in the region.After considering premium income,insurance depth as a substitute for the development degree of the insurance industry,endogenous problems and the influence of regional geographical location,the regression results are still stable.Using the intermediary effect model proposed by Sobel(1982),Baron?Kenny(1986)and Wen Zhonglin et al.(2004,2014)for reference,this paper further analyzes the impact path.The results show that the development of regional insurance industry promotes the total factor productivity of enterprises in the region by promoting industrial agglomeration and improving financing environment.Secondly,the level of insurance purchased by enterprises can also significantly promote the total factor productivity of enterprises,that is,the higher the level of insurance purchased by enterprises,the higher the total factor productivity.Enterprises buy commercial insurance such as property insurance,pension and health insurance;Or take part in social insurance such as work-related injury and unemployment,which have a significant positive impact on the improvement of total factor productivity of enterprises.The intermediary effect model is used to analyze and verify the impact path:the purchase of insurance promotes the total factor productivity of enterprises by improving the innovation ability of enterprises,alleviating the financing constraints of enterprises,prolonging the survival time of enterprises and improving the performance of enterprise executives.After using Levinsohn?Petrin(2003)to measure the total factor productivity of enterprises and considering the endogenous problem,the regression results are still stable.Compared with the previous literature,this paper expands in the following two aspects:First,it discusses the theoretical mechanism that the development of regional insurance industry and the purchase of insurance affect the total factor productivity of enterprises,and expands the research boundary of the determinants of the total factor productivity of Chinese enterprises from a brand-new perspective.Secondly,unlike the existing research on the economic effects of insurance development,which focuses on the calculation of macro-economic growth or total factor productivity indicators at the national or regional level,this paper measures the total factor productivity at the enterprise level,and empirically analyzes the differences and specific paths of productivity of enterprises with different insurance development levels in different regions.To a certain extent,the research of this paper reveals the internal logic and microfoundation of the insurance industry serving the economic and social development.From the perspective of policy making,it will help government departments to formulate policies and measures for the insurance industry reform under the guidance of the "14th Five-Year Plan",and better guide the insurance industry to improve its ability to serve the real economy and innovate insurance products and services that directly reach the real economy.From the perspective of enterprise development,this paper makes a scientific test on the improvement of enterprise production efficiency by insurance,and provides theoretical support for insurance to promote enterprise innovation and finance.