| With regard to the relationship between financial development and economic growth studies,mostly focused on the internal relationship between banks,stock markets and economic growth, but rarely been examined for the internal relationship between the insurance market development and economic growth. As part of the overall development of financial institutions, insurance is equally important with other financial services from the qualitative and quantitative terms. In recent years, the insurance industry plays an increasingly prominent role in broadening investment channels, the insurance company has become one of the three major institutional investors in the capital market. And the insurance industry relative to other financial services more prominent the importance of its quality, which stems from the special features of the insurance:risk transfer and financial compensation. With the further economic development, risk factors will gradually increase, the relationship between risks will become complicated, if we do not pay attention to prevention and control risk,it will have certain impact on the economy and impede economic growth.So,there is a need for the research of the relationship between insurance development and economic growth.At the same time,china has an obvious regional differences of insurance development and economic growth, in the conditions of this reality.how to play the insurance’s functions:risk transfer and financial compensation in each regional economy,so that insurance can serve the regional economy better,which must be addressed for the economy to achieve sustainable development. Therefore,it will have practical sifnificance to research the relationship between insurance development and economic growth in the constraints of regional differencesThis article measured the size and trends of regional differences for China’s insurance development and economic growth.Inter-regional difference have objectivity and rationality of its existence.but it is also been needed attention that the difference is too large leading to loss of balance in development between different regions and thus impede development, because the difference is only in the context of a reasonable order to provide impetus of development. Therefore, this article answered further two questions through the non-stationary panel data cointegration tests and estimation:Have China’s insurance development and economic growth in the regions formed a kind of positive interaction relations? What is the regional difference of the relationship between development and economic growth?For the study of regional differences in insurance development, mostly concentrated on interregional comparison of the value of insurance development indicators, few measured the degree of regional differences. On the basis of existing research, this article described the extent and its trend of regional differences in insurance development through the methods of measuring differences.In the past, the empirical analysis on the relationship between insurance development and economic growth is generally based on cointegration analysis in time series data or model estimates in panel data, while the time series cointegration analysis has small samples and sensitive issues, model estimates in panel data does not take the stability of the variable into account, if the variable is not stable, then the estimated results may be"spurious regression". In this article, non-stationary panel data cointegration test overcomeed small sample size and sensitivity issues of the cointegration analysis,using the fully modified OLS(FMOLS) to estimate non-stationary panel data cointegration vector, avoided a possible "spurious regression", which is the supplementary for empirical analysis of relationship between insurance development and economic growth... |
