On The Interactive Relationship Among Life Insurance Development,Income Gap And Economic Growth In South America

As an important part of the modern financial system,the insurance industry,together with the banking,securities and trust industries,is known as the four pillars of the modern financial industry.Its impact and contribution to the socio-economy is growing.In the 1980 s,South America were experiencing a severe debt crisis.Under the influence of the new liberalism ideological trend,governments have started to reform,to promote economic recovery at the same time,also make the life insurance industry of South America is able to rapid development,become one of the fastest growing industry in the national economy,and obtained great achievements.However,with the rapid economic growth and the rapid development of life insurance industry,the income gap in South America is becoming increasingly serious and social conflicts are emerging.At present,South America has become the most prominent region in the world in terms of income inequality,which is also highly valued by the governments of various countries.Therefore,it is necessary to study and discuss the relationship between life insurance development,income gap and economic growth in South America,and sums up the experience in the process of exploring issues exist,and puts forward policy suggestions,this to promote the development of South American life insurance stability,promote sustained economic growth and solve the income inequality problem in South America is of great significance,but also hope that the development of the life insurance market in South America experience some enlightenment for the development of the life insurance market in China.This paper takes the life insurance market in South America as the object of study.Firstly,the relevant researches at home and abroad are sorted out.Secondly,it analyzes the development situation and macro environment of life insurance industry in South America.Thirdly,the relationship between life insurance development,income gap and economic growth is analyzed theoretically.Then,the research variables were defined,the research hypotheses were made based on the theoretical basis,and the Bootstrap ARDL model was introduced in detail.Next,the data of the five major life insurance markets in South America from 1980 to 2016 were selected and combined with the model for empirical analysis,focusing on the interaction between the three variables.It was found that there was a cointegration relationship between the development of life insurance industry,income gap and economic growth in the fivecountries in South America.The granger causality analysis suggests that governments in Argentina,Brazil and Chile could use insurance as a stimulus.For all selected countries in South America,there is a link between income inequality and life insurance consumption.Finally,based on theoretical and empirical analysis,the corresponding policy recommendations are proposed.