Study On The Effect Of Insurance Investment Scale And Risk On National Economic Growth

The insurance industry is closely related to national economic development. Insurance investment, as one of the two lifelines of the insurance industry, promotes the insurance industry's healthy development because of its special features and natures. Investment, as one of the three channels that stimulate economic growth, plays an important role in promoting China's economic growth. As the insurance investment scale is expanding and the channels are extending, the effect of insurance investment on national economic growth is more and more profound. Based on this, this paper studies the effect of insurance investment on national economic growth.Firstly, based on the existing theories and researches and combined with current situation, this paper analyzes the mechanism of the effect. Insurance investment effects economic growth through the direct channel and the indirect channel, and insurance investment has both promoting effect as well as inhibiting effect on the economic growth.Then, this article analyzes empirically the effect of insurance investment scale on national economic growth. The result shows that co-integration exists between the insurance investment scale and economic growth. According to the result of Granger causal relationship test, insurance investment scale is the Granger Cause of national economic growth. By establishing error correction model, it is proved that short-term alteration of economic growth not only lies on the short-term alteration of insurance investment, but also lies on the deviation from long-term equilibrium of the last stage of economic growth and insurance investment. No matter in long term or short term, insurance investment scale has effect on the growth of economy. Besides, this article analyzes the negative impact on economic growth for different types of risk from the perspective of the insurance investment risk.Finally, this paper gives conclusions and policy recommendations.