Insurance Industry Influence On Economic Growth Mechanism And Its Empirical Study

Insurance has already become an important section in the modern economy. The insurance industry has obtained tremendous achievement with economic growth in China. The step of insurance increase is faster than macroeconomic. Insurance plays a more and more importance role in promoting economy, protecting stabilizing society and so on. As economy "stabler", It is not sure that the insurance whether to promote the economical growth and the economy develops steadily. So far, this question did not have the explicit answer. Based on this question, this paper has carried on empirical study on China's actual situation.Firstly, this paper analyzes the relationship between consumer, export, capital accumulation, technology renovation and the economic growth, meanwhile, the relationship of finance and economic growth and the mechanism of insurance industry are also conclude.Secondly, by analyzing the history, current situation and encountered distress of insurance industry, this paper theoretically analyzes the role of insurance industry in the economic system. And the mechanism how insurance industry promotes economic is also detected. By the channel of consumer, exportation, capital accumulation and technology renovation, insurance industry can promote economic.Thirdly, based on the theoretical research, the influence of the insurance industry on the economic growth is analyzed, and the mechanism of the insurance promoting the economic is empirically examined. The results of GRANGER test and VAR model show that insurance industry is one of the factor that promotes the economic growth, and ADL models also support this conclusion.Lastly, based on the theoretical and empirical results, some suggestions are put forward from the perspective of promoting insurance industry.